Thor (THO) Q1 Earnings Beat Estimates, Decline Sharply Y/Y
Thor Industries, Inc. THO reported earnings of 99 cents per share for first-quarter fiscal 2024 (ended Oct 31, 2023), which surpassed the Zacks Consensus Estimate of 87 cents. The bottom line tumbled 60.9% from the year-ago quarter’s earnings of $2.53 per share.
The company registered revenues of $2,500.8 million for the quarter under review, lagging the Zacks Consensus Estimate of $2,510.4 million. The top line declined 19.5% year over year.
Segmental Results
North American Towable RVs: Revenues from the segment came in at $945.5 million, down 28.3% year over year due to a decrease in unit shipments and overall net price per unit. It also missed our estimate of $1,186 million.
Gross profit totaled $118 million, declining 39.7% year over year. The pretax income totaled $49.2 million, down from $111 million recorded in the year-ago period amid lower sales and gross profit margins. The unit’s total backlog was $795.8 million at the quarter's end, down sharply from $1,567.8 million as of Oct 31, 2022.
North American Motorized RVs: Revenues from the segment totaled $711.2 million, which fell 36.7% year over year, owing to a decrease in unit shipments and net price per unit. However, the figure surpassed our estimate of $597.5 million.
Gross profit totaled $79.4 million, falling 57.3% year over year. Consequently, pretax profit came in at $37.1 million, declining 70.2% from the year-ago period. The segment’s backlog was $1,237.5 million, down from $2,864.3 million as of Oct 31, 2022.
European RVs: Revenues from the segment came in at $708.2 million, up 40.4% from the year-ago period due to an increase in unit shipments and net price per unit. It also outpaced our estimate of $613.5 million.
Gross profit of $122.8 million increased by 78.4% year over year. The segment reported a pretax income of $28.8 million, higher than the year-ago pretax loss of $6.5 million. The backlog of the segment was $3,331.1 million, reflecting a rise from $2,985.2 million recorded as of Oct 31, 2022.
Financials
As of Oct 31, 2023, Thor had cash and cash equivalents of $425.8 million and long-term debt of $1,271.9 million. During the first quarter of fiscal 2024, THO repurchased $30 million of common stock at an average price of $91.61.
Guidance for Fiscal 2024
Thor has reaffirmed its full-year guidance for fiscal 2024. It projects its full-year consolidated net sales in the range of $10.5-$11 billion. The consolidated gross profit margin is expected to be in the range of 14.5-15%. Earnings per share are expected to be in the range of $6.25-$7.25.
Zacks Rank & Key Picks
THO currently carries Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo VLVLY, Renault SA RNLSY and BYD Company Limited BYDDY, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 3 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased by 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased by 59 cents and 55 cents, respectively, in the past 60 days.
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