Why Salesforce.com (CRM) Could Beat Earnings Estimates Again
Thor Industries, Inc. THO reported third-quarter fiscal 2018 (ended Apr 30, 2018) adjusted earnings of $2.53 per share, missing the Zacks Consensus Estimate of $2.65. However, adjusted earnings increased almost 20% from the year-ago figure of $2.11. Net income rose to $133.8 million from $111.3 million in the prior-year quarter.
Revenues rose 11.7% year over year to $2.25 billion and outpaced the Zacks Consensus Estimate of $2.2 billion.
Gross profit increased 7.8% to $316.7 million from $294 million in third-quarter fiscal 2017. The gross profit margin decreased to 14.1% compared with 14.6% in the year-ago quarter, due to increased costs, primarily associated with extended warranty expenses on certain products and slightly higher labor as well as material costs.
Thor Industries, Inc. Price, Consensus and EPS Surprise
Thor Industries, Inc. Price, Consensus and EPS Surprise | Thor Industries, Inc. Quote
Sales of Towable RVs went up 12.8% year over year to $1.61 billion. Pre-tax income shot up 9.9% to $147.9 million from $134.5 million in the comparable quarter last fiscal. Growth in the metric was backed by higher sales, decreased selling, general and administrative (SG&A) expenses, and slightly lower amortization expenses, partly offset by a lower gross margin.
Sales from Motorized RVs improved 8.8% to $598.5 million from $549.9 million in the year-ago quarter. Pre-tax income from the segment surged 4.2% to $38.9 million from $37.4 million a year ago, driven by higher sales, partly offset by a lower gross margin.
Thor Industries had cash and cash equivalents of $147 million as of Apr 30, 2018, down from $223.3 million as of Jul 31, 2017. Long-term debt was $80 million as of Apr 30, 2018, compared with $145 million recorded on Jul 31, 2017.
In the first six months of fiscal 2018, Thor Industries’ operating cash inflow increased to $197.2 million compared with $182.8 million during the same period in the previous fiscal.
Zacks Rank & Stocks to Consider
Thor Industries currently sports a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN, Navistar International Corporation NAV and Oshkosh Corporation OSK. Presently, each of these stocks carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have risen 13.4% over the past year.
Navistar has an expected long-term growth rate of 5%. Shares of the company have risen 31.5% over the past year.
Oshkosh has an expected long-term growth rate of 18.3%. Shares of the company have risen 13.8% over the past year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Navistar International Corporation (NAV) : Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
Thor Industries, Inc. (THO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research