NEW YORK (AP) -- Shares of bus and camper maker Thor Industries Inc. fell Friday after the company reported a smaller-than-expected profit in its third quarter.
THE SPARK: The company said it earned 78 cents per share over the three months ended April 30, just shy of the 80 cents per share analysts had expected. It said sales of RVs and buses both rose 9 percent compared to a year ago.
THE BIG PICTURE: The Jackson Center, Ohio, company reported overall sales rose 9 percent to $926.5 million but said "elevated RV promotional environment has thwarted further margin expansion."
THE ANALYSIS: Robert W. Baird & Co. analyst Craig Kennison said the company's profit margins are still under pressure, but they are not getting worse. He said he believes the company's backlog includes fewer discounts. Kennison maintained an "Outperform" rating and a price target of $36 per share on the stock.
SHARE ACTION: Shares of Thor Industries lost 94 cents, or 3.1 percent, to $29.25 in afternoon trading. The stock is down 11.5 percent from its May 1 closing price.
