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Thor Industries Q4, FY15 Earnings Miss Estimates, Rise Y/Y

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Share price of Thor Industries Inc.THO increased 1% to $54.56 on Sep 21 after the company reported year-over-year increase in results. The company reported fourth-quarter fiscal 2015 (ended Jul 31, 2015) earnings of $1.14 per share that missed the Zacks Consensus Estimate of $1.32. Meanwhile, earnings increased from $1.13 per share recorded in the fourth quarter of fiscal 2014.

Thor Industries Inc. - Earnings Surprise | FindTheBest

Including discontinued operations of Thor's Bus business and one time items, earnings amounted to $69 million or $1.31 per share in fourth-quarter fiscal 2015, compared with $66.6 million or $1.25 per share in the corresponding quarter of fiscal 2014.

Revenues rose 2% year over year to $1.06 billion but missed the Zacks Consensus Estimate of $1.16 billion. The year-over-year improvement was driven by the addition of revenues from the Postle acquisition made on May 1, 2015, partially negated by lower revenues from towable and motorized recreational vehicles (RVs).

Gross profit margin improved to 16.2% from 14.6% in the year-ago quarter, led by tariff rebates on certain imported raw materials along with improvement in labor and warranty costs as a percent of sales.

Fiscal 2015 Performance

Thor posted a year-over-year rise of 15% in adjusted earnings to $3.79 per share for fiscal 2015, missing the Zacks Consensus Estimate of $3.81. Revenues for fiscal 2015 increased 14% to roughly $4.01 billion from $3.53 billion in fiscal 2014, but missed the Zacks Consensus Estimate of $4.1 billion.

Segment Results

Sales of Towable RVs dropped 3% year over year to $802.2 million and pre-tax income improved 2% to $85.7 million in the reported quarter from $84.0 million in the fourth quarter last year. The improvement in pre-tax income was driven by tariff rebates on certain imported raw materials.

Revenues from Motorized RVs declined to $216.4 million from $217.8 million in the prior-year quarter. Pre-tax income from the segment increased 33% to $19.9 million in the quarter from $15.0 million last year. The improvement was due to improved labor and warranty costs relative and tariff rebates.

Financial Position

Thor had cash and cash equivalents of $183.5 million as of Jul 31, 2015, down from $289.3 million as of Jul 31, 2014.

Our Take

Thor is poised to benefit from the ongoing strength of retail RV sales based on introduction of baby boomers in the core RV buying age group, coupled with the rapid increase in young buyers entering the RV market.

Zacks Rank

Currently, Thor sports a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the same industry include Pep Boys - Manny, Moe & Jack PBY , Meritor, Inc. MTOR and U.S. Auto Parts Network, Inc. PRTS . Pep Boys sports a Zacks Rank #1 while U.S. Auto Parts and Meritor hold a Zacks Rank #2 (Buy).

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THOR INDS INC (THO): Free Stock Analysis Report

MERITOR INC (MTOR): Free Stock Analysis Report

PEP BOYS M M &J (PBY): Free Stock Analysis Report

US AUTO PARTS (PRTS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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