Thor Industries, Inc. THO reported earnings of 26 cents per share for the first quarter of fiscal 2025 (ended Oct. 31, 2024), which missed the Zacks Consensus Estimate of 67 cents. The bottom line fell from 99 cents per share reported in the corresponding quarter of fiscal 2024.
The company registered revenues of $2.14 billion for the fiscal first quarter, missing the Zacks Consensus Estimate of $2.25 billion. The top line declined 14.3% year over year.
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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 $898.8 million, down 4.9% year over year due to a decline in net price per unit. The figure, however, beat our estimate of $773.6 million.
Gross profit totaled $112.4 million, down 4.7% year over year. The pretax income totaled $46.8 million, down from $49.2 million recorded in the year-ago period, primarily due to a decrease in net sales. The unit’s total backlog was $933.1 million at the quarter's end, up from $795.8 million as of Oct. 31, 2023.
North American Motorized RVs: Revenues from the segment totaled $505.2 million, which fell 29% year over year, owing to a decrease in unit shipments and consumer demand. The figure also missed our estimate of $550.7 million.
Gross profit totaled $42.7 million, down 46.2% year over year. Consequently, pretax profit came in at $9.1 million, down 75.5% from the year-ago period. The segment’s backlog was $963.1 million, down from $1.24 billion as of Oct. 31, 2023.
European RVs: Revenues from the segment came in at $604.9 million, down 14.6% from the year-ago period due to a decline in unit shipments. The figure also missed our estimate of $785.1 million.
Gross profit of $92.6 million fell 24.6% year over year. The segment reported a pretax income of $1.2 million, lower than the year-ago pretax income of $28.8 million. The backlog of the segment was $2.04 billion, which declined from $3.33 billion recorded as of Oct. 31, 2023.
Financials
As of Oct. 31, 2024, Thor had cash and cash equivalents of $445.2 million and long-term debt of $1.04 billion. In October 2024, the company increased its dividend by 4.2% to 50 cents per share.
Thor Reiterates Fiscal 2025 Guidance
Thor projects its fiscal 2025 consolidated net sales in the range of $9-$9.8 billion, down from $10 billion reported in fiscal 2024. The consolidated gross profit margin is expected in the band of 14.7-15.2%, up from 14.5% reported in fiscal 2024. EPS is expected in the range of $4-$5 compared with $4.94 reported in fiscal 2024.
THO’s Zacks Rank & Key Picks
Thor currently carries a Zacks Rank #4 (Sell)
Some better-ranked stocks in the auto space are Dorman Products, Inc. DORM, Tesla, Inc. TSLA and Blue Bird Corporation BLBD, 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 DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 25 cents and 21 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for TSLA’s 2024 sales suggests year-over-year growth of 2.97%. EPS estimates for 2024 and 2025 have improved 2 cents each in the past 30 days.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 17 cents and 40 cents, respectively, in the past seven days.
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