I don't have alot of experience with this comapny and stock, but what I read in the past from some this should be lower. I like a good correction (about 25%), it is healthy and can be very rewarding, but has this stock suffered enough or will it get into the 30's or upper 20's?
The question is whether analysts back out unusual items ($1.1 million in separation expense) and intangibles amortization the way most analysts do for most companies. If so, THO earned $0.63, beating the average analyst estimate of $0.62.
Sales were picking up but a lot of those sales were from N.D. which is pretty saturated now. They're also giving discounts on their units to get rid of them. If the discount matches what the line of credit costs the dealer, then yes, they'll take some more but, if there's any lag at the dealerships, the glut will stop.
Analysts back out one-time items and intangible amortization from their estimates. If you back out the $1.1 million in separation expense and the IA, you get $0.63. Also, the warranty provision was unusually high relative to payment in this quarter relative to 1Qs in recent years. I suppose that is because of the strong revenue growth. It also could represent a legitimate smoothing method to tuck away a little earnings for future quarters when they might need it.