Thor Industries, Inc. THO reported earnings of 40 cents per share for the second quarter of fiscal 2024 (ended Jan 31, 2024), which missed the Zacks Consensus Estimate of 69 cents. The bottom line tumbled 20% from the year-ago quarter’s earnings of 50 cents per share.

The company registered revenues of $2.21 billion for the quarter under review, lagging the Zacks Consensus Estimate of $2.30 billion. The top line declined 5.9% year over year.

Thor Industries, Inc. Price, Consensus and EPS Surprise Thor Industries, Inc. Price, Consensus and EPS Surprise

Thor Industries, Inc. price-consensus-eps-surprise-chart | Thor Industries, Inc. Quote

Segmental Results

North American Towable RVs: Revenues from the segment came in at $730.97 million, down 11.9% year over year due to a decrease in overall net price per unit. The figure also missed our estimate of $805.7 million.

Gross profit totaled $53.9 million, rising 2% year over year. The pretax income totaled $661,000 against a pretax loss of $7.1 million recorded in the year-ago period, primarily due to lower amortization costs and larger gains on the sales of fixed assets. The unit’s total backlog was $836.2 million at the quarter's end, down from $1.15 billion as of Jan 31, 2023.

North American Motorized RVs: Revenues from the segment totaled $570.4 million, which fell 22.8% year over year, owing to a decrease in unit shipments, product mix and net price per unit. The figure also missed our estimate of $702.6 million.

Gross profit totaled $60.7 million, falling 43.4% year over year. Consequently, pretax profit came in at $26.4 million, declining 57% from the year-ago period due to lower sales and gross margin. The segment’s backlog was $1.07 billion, down from $1.85 billion as of Jan 31, 2023.

European RVs: Revenues from the segment came in at $782.3 million, up 20.9% from the year-ago period, driven by an increase in unit shipments and net price per unit. The figure beat our estimate of $695.9 million.

Gross profit of $119.3 million increased 30.5% year over year. The segment reported a pretax income of $38.1 million, higher than the year-ago pretax income of $12 million. The backlog of the segment was $2.75 billion, which declined from $3.01 billion recorded as of Jan 31, 2023.



Financials

As of Jan 31, 2024, Thor had cash and cash equivalents of $340.2 million and long-term debt of $1.39 billion. During the second quarter of fiscal 2024, THO did not repurchase any shares of its common stock.

Guidance for Fiscal 2024

Thor has revised its full-year guidance for fiscal 2024. It now projects its full-year consolidated net sales in the range of $10-$10.5 billion, down from the previous guidance of $10.5-$11 billion. The consolidated gross profit margin is now expected in the band of 14-14.5%, down from the previous range of 14.5-15%. Earnings per share (EPS) are now expected in the range of $5-$5.50, down from the previous guidance of $6.25-$7.25.

Zacks Rank & Key Picks

THO currently carries a Zacks Rank #4 (Sell).

Some better-ranked players in the auto space are Modine Manufacturing Company MOD, General Motors Company GM and Allison Transmission Holdings, Inc. ALSN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MOD’s 2024 sales and earnings suggests year-over-year growth of 4% and 67.2%, respectively. The EPS estimates for 2024 have improved 22 cents in the past 60 days. The EPS estimates for 2025 have improved by a penny in the past seven days.

The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved 17 cents and 32 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 30 days.

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