Personal Finance
THO

Why Thor Industries, Inc. Stock Dropped Today

Husband and wife standing with bicycles near an Airstream RV.

Shares of Thor Industries Inc. (NYSE: THO) were down 12.8% as of 3:15 p.m. EDT Thursday after the recreational-vehicle specialist announced weaker-than-expected fiscal fourth-quarter 2018 earnings.

More specifically, Thor Industries' quarterly net sales declined 3.1% year over year, to $1.87 billion, which translated to a 26.1% decline in earnings per diluted share, to $1.67. Analysts, on average, were looking for earnings of $2.03 per share on revenue of $1.85 billion.

Husband and wife standing with bicycles near an Airstream RV.

IMAGE SOURCE: GETTY IMAGES

So what

"Our fourth quarter results reflect the actions taken during the period to balance dealer inventory levels," explained Thor CEO Bob Martin. "We believe our reduced production levels, combined with higher promotional costs and solid retail demand, have improved the position of our dealers' inventories as they enter the new model year and prepare for the upcoming Dealer Open House."

Martin added that Thor's bottom line also suffered from a combination of higher labor costs and warranty expenses, as well as inflationary price increases driven by tariffs on certain raw material and commodity-based components.

Now what

Looking ahead, Thor Industries believes it will continue to benefit from today's healthy macroeconomic environment and favorable industry trends. But it also expects "near-term growth challenges" for the first half of fiscal 2019, given difficult year-over-year comparisons, which will then be followed by "more favorable top-line growth rates in the second half of the fiscal year."

In the end, while Thor Industries' long-term story appears intact, it's hard to blame the market for bidding shares down today, given its bottom-line miss and impending growth headwinds.

10 stocks we like better than Thor Industries

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Thor Industries wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 6, 2018

Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

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.

In This Story

THO

Other Topics

Stocks

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More