Here's How Thor (THO) is Placed Ahead of Q1 Earnings Release
Thor Industries THO is scheduled to release first-quarter fiscal 2024 results on Dec 6, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 87 cents and $2.51 billion, respectively.
The Zacks Consensus Estimate for Thor’s fiscal first-quarter earnings per share has been revised down by 7 cents in the past 30 days. Its bottom-line projection, however, implies a year-over-year deterioration of 65.6%. The Zacks Consensus Estimate for revenues suggests a year-over-year decline of 19.2%.
This largest manufacturer of recreational vehicles (RVs) in the world, based in Indiana, posted higher-than-expected earnings in the last reported quarter on higher-than-anticipated results from its European RVs segment. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 34.5%. This is depicted in the graph below:
Thor Industries, Inc. Price and EPS Surprise
Thor Industries, Inc. price-eps-surprise | Thor Industries, Inc. Quote
Factors at Play
The buyout of Germany-based EHG made Thor the largest RV manufacturer in the world. EHG’s strength in product development, technology and efficiency complements Thor’s North American market position and has bolstered its foothold in the European market. The acquisition of TiffinHomes further expanded Thor's existing portfolio and has been bolstering revenues. Commercial and operational synergies from both buyouts are likely to drive Thor’s first-quarter results.
Investors should note that Thor expects sales from the North America Motorized unit to decline year over year in fiscal 2024 amid expected reductions in average selling prices and a decrease in unit shipments of motorized products. Dim projections induce pessimism for the to-be-reported quarter results as well. However, THO expects improved wholesale shipment volumes and gross margin improvement within the North American Towable segment in fiscal 2024. The performance of the European RVs unit is also likely to have witnessed continued momentum. Robust outlook for Towable and European segments spark optimism for the fiscal first quarter of 2024.
Our estimate for first-quarter fiscal 2024 units sold from the North American Motorized RVs segment implies a year-over-year uptick of 0.2%, while the same for the North American Motorized segment indicates a year-over-year decline of 8.8%. Our projection for the units sold in the European RV segment calls for an increase of 20%.
What Does Our Model Say
Our proven model doesn’t conclusively predict an earnings beat for Thor in the to-be-reported quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: Thor has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Thor currently carries a Zacks Rank of #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Quarterly Releases of Other Legacy Automakers
Tesla TSLA reported third-quarter 2023 results on Oct 18. It reported earnings per share of 66 cents for the quarter under review, which declined from the year-ago figure of $1.05 and also missed the Zacks Consensus Estimate of 72 cents. Total revenues came in at $23,350 million, witnessing year-over-year growth of 9%. The top line, however, fell short of the consensus mark of $24,381 million.
Tesla had cash and cash equivalents of $26,077 million as of Sep 30, 2023, compared with $22,185 million on Dec 31, 2022. Net cash provided by operating activities amounted to $3,308 million in third-quarter 2023. Capital expenditure totaled $2,460 million in the quarter under review.
General Motors GM reported third-quarter 2023 results on Oct 24. It posted adjusted earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $1.84 on higher-than-expected profit from GMNA, GMI and Financial segments. The bottom line also increased from the year-ago quarter’s earnings of $2.25 per share. Revenues of $44,131 million beat the Zacks Consensus Estimate of $43,296 million and increased from $41,889 million recorded in the year-ago period.
General Motors had cash and cash equivalents of $25,224 million as of Sep 30, 2023 compared with $19,153 million as of Dec 31, 2022. The long-term automotive debt at the end of the quarter was $15,962 million compared with $15,885 million as of Dec 31, 2022.
Ford F reported third-quarter 2023 results on Oct 26. It reported adjusted earnings of 39 cents per share for third-quarter 2023, which missed the Zacks Consensus Estimate of 40 cents but increased from 30 cents recorded in the year-ago quarter. The company’s consolidated third-quarter revenues came in at $43,801 million, rising 11.2% year over year.
Ford reported adjusted free cash flow of $1,225 million for the quarter. It had cash and cash equivalents of $26,427 million as of Sep 30, 2023. Long-term debt, excluding Ford Credit, totaled $19.33 billion at the end of the third quarter of 2023.
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