Thor (THO) to Report Q4 Earnings: Here's What to Expect
Thor Industries THO is scheduled to release fourth-quarter fiscal 2023 results on Sep 25, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 96 cents and $2.45 billion, respectively.
The Zacks Consensus Estimate for Thor’s fiscal fourth-quarter earnings per share has been revised higher by 2 cents in the past seven days. Its bottom-line projection, however, implies a year-over-year deterioration of 81.36%. The Zacks Consensus Estimate for revenues also suggests a year-over-year decline of 35.91%.
The 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 revenues 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 22.36%. 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 to Shape Q4 Results
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 has further expanded Thor's existing portfolio and is bolstering revenues. Commercial and operational synergies from both buyouts are likely to have buoyed Thor’s fourth-quarter result.
Here’s a look at the estimates for key segmental metrics of the company.
Our estimate for fourth-quarter fiscal 2023 revenues from the North American Motorized RVs segment is pegged at $703 million, indicating a decline from $1,024.8 million recorded in the year-ago period.
Our estimate for revenues from the North American Towable RVs unit is $942.4 million, down from $1,795.9 recorded in the year-ago period.
Our estimate for revenues from the European RV segment is $546 million, indicating a decrease from $806.7 million registered in the year-ago period.
What Does Our Model Say
Our proven model predicts an earnings beat for Thor in the to-be-reported quarter, as it has the right combination of the two key ingredients. 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 the case here, as you will see below.
Earnings ESP: Thor has an Earnings ESP of +22.73%. This is because the Most Accurate Estimate is pegged 22 cents higher than 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.
Peer Release
Rev Group REVG released third-quarter fiscal 2023 results on Sep 13. It posted adjusted earnings of 35 cents per share, which beat the Zacks Consensus Estimate of 25 cents. The bottom line also rose from the year-ago earnings of 24 cents. The company registered revenues of $680 million for the quarter under review, outpacing the Zacks Consensus Estimate of $623 million. The top line increased from $595 million reported in the year-ago quarter.
Rev also revised its guidance for fiscal 2023. It now projects full-year consolidated net sales in the range of $2.55-$2.6 billion, up from prior guidance of $2.45-$2.55 billion. Net income is expected to be $27-$37 million, up from prior guidance of $15-$30 million. Adjusted EBITDA is expected in the range of $135-$145 million, up from prior guidance of $120-$135 million. Adjusted net i ncome is expected in the range of $63-$73 million, up from prior guidance of $48-$62 million. Free cash flow is estimated in the range of $70-$75 million, up from prior guidance of $43-$56 million.
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