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Thor Industries (THO - Free Report) delivered adjusted earnings of $2.24 per share for third-quarter 2023, which surpassed the Zacks Consensus Estimate of $1.13 per share. This outperformance can be primarily attributed to higher-than-expected revenues from the European RVs segments.
The bottom line declined massively by 64.6% from the year-ago profit of $6.32 per share. The company registered revenues of $2,928.8 million for the quarter under review, outpacing the Zacks Consensus Estimate of $2,838 million. However, the top line declined 37.1% year over year.
Thor Industries, Inc. Price, Consensus and EPS Surprise
North American Towable RVs: Revenues from the segment came in at $1,124 million, down 57.4% year over year due to a decrease in unit shipments resulting from soft dealer and consumer demand. The top line also missed the Zacks Consensus Estimate of $1,354 million.
Gross profit totaled $144 million, declining 68.3% year over year. The pretax income totaled $77.6 million, down from $326.7 million recorded in the year-ago period amid lower gross profit margins. The unit’s total backlog was $757 million at quarter-end, down sharply from $6.9 billion as of Apr 30, 2022.
North American Motorized RVs: Revenues from the segment totaled $795.9 million, which fell 24.4% year over year, owing to a decrease in unit shipments and net price per unit. The top line also lagged the consensus mark of $831 million. Gross profit totaled $93.3 million, dwindling 46.3% year over year. Consequently, pretax profit came in at $48.2 million, declining 58.6% from the year-ago period. The segment’s backlog was $1.26 billion, down from $4.1 billion as of Apr 30, 2022.
European RVs: Revenues from the segment came in at $866.8 million, up 19.7% from the year-ago period. The top line also outpaced the consensus mark of $637 million. Gross profit of $151.8 million, rising 52% year over year. The segment reported a pretax income of $72.4 million, higher than the year-ago level of $20.6 million. The backlog of the segment was $3,474 million, reflecting a rise from $2,878 million recorded on Apr 30, 2022.
Financials
As of Apr 30, 2023, Thor had cash and cash equivalents of $353.2 million and long-term debt of $1,641 million. During the third quarter of 2023, THO repurchased $16.6 million of common stock.
Revised Guidance for 2023
Thor revised its full-year guidance for fiscal 2023. Thor now projects its full year consolidated net sales in the range of $10.5-$11.0 billion, down from the prior guided range of $10.5-$11.5 billion. The consolidated gross profit margin is now expected to be in the range of 13.8-14.2%, up from the previously guided range of 13.4-14.2%. Diluted earnings per share are now expected to be in the range of $5.80-$6.50, up from the previously projected range of $5.50-$6.50.
General Motors is one of the world’s largest automakers. The Zacks Consensus Estimate for GM’s 2023 sales indicates year-over-year growth of 4.5%.
Stellantis, an Italian-American automaker, is also one of the noted names in the auto space. The Zacks Consensus Estimate for STLA’s 2023 sales indicates year-over-year growth of 13.42%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.
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Thor (THO) Q3 Earnings Surpass Estimates, Sales Decline Y/Y
Thor Industries (THO - Free Report) delivered adjusted earnings of $2.24 per share for third-quarter 2023, which surpassed the Zacks Consensus Estimate of $1.13 per share. This outperformance can be primarily attributed to higher-than-expected revenues from the European RVs segments.
The bottom line declined massively by 64.6% from the year-ago profit of $6.32 per share. The company registered revenues of $2,928.8 million for the quarter under review, outpacing the Zacks Consensus Estimate of $2,838 million. However, the top line declined 37.1% year over year.
Thor Industries, Inc. Price, Consensus and EPS Surprise
Thor Industries, Inc. price-consensus-eps-surprise-chart | Thor Industries, Inc. Quote
Segmental Results
North American Towable RVs: Revenues from the segment came in at $1,124 million, down 57.4% year over year due to a decrease in unit shipments resulting from soft dealer and consumer demand. The top line also missed the Zacks Consensus Estimate of $1,354 million.
Gross profit totaled $144 million, declining 68.3% year over year. The pretax income totaled $77.6 million, down from $326.7 million recorded in the year-ago period amid lower gross profit margins. The unit’s total backlog was $757 million at quarter-end, down sharply from $6.9 billion as of Apr 30, 2022.
North American Motorized RVs: Revenues from the segment totaled $795.9 million, which fell 24.4% year over year, owing to a decrease in unit shipments and net price per unit. The top line also lagged the consensus mark of $831 million. Gross profit totaled $93.3 million, dwindling 46.3% year over year. Consequently, pretax profit came in at $48.2 million, declining 58.6% from the year-ago period. The segment’s backlog was $1.26 billion, down from $4.1 billion as of Apr 30, 2022.
European RVs: Revenues from the segment came in at $866.8 million, up 19.7% from the year-ago period. The top line also outpaced the consensus mark of $637 million. Gross profit of $151.8 million, rising 52% year over year. The segment reported a pretax income of $72.4 million, higher than the year-ago level of $20.6 million. The backlog of the segment was $3,474 million, reflecting a rise from $2,878 million recorded on Apr 30, 2022.
Financials
As of Apr 30, 2023, Thor had cash and cash equivalents of $353.2 million and long-term debt of $1,641 million. During the third quarter of 2023, THO repurchased $16.6 million of common stock.
Revised Guidance for 2023
Thor revised its full-year guidance for fiscal 2023. Thor now projects its full year consolidated net sales in the range of $10.5-$11.0 billion, down from the prior guided range of $10.5-$11.5 billion. The consolidated gross profit margin is now expected to be in the range of 13.8-14.2%, up from the previously guided range of 13.4-14.2%. Diluted earnings per share are now expected to be in the range of $5.80-$6.50, up from the previously projected range of $5.50-$6.50.
Zacks Rank & Key Picks
THO currently carries a Zacks Rank #3 (Hold).
Some top-ranked players in the auto space are General Motors (GM - Free Report) , Stellantis N.V. (STLA - Free Report) and Wabash National (WNC - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors is one of the world’s largest automakers. The Zacks Consensus Estimate for GM’s 2023 sales indicates year-over-year growth of 4.5%.
Stellantis, an Italian-American automaker, is also one of the noted names in the auto space. The Zacks Consensus Estimate for STLA’s 2023 sales indicates year-over-year growth of 13.42%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings indicates year-over-year growth of 12% and 90.7%, respectively.