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THO

Why Thor Industries Soared 80% in 2016

Jayco will add $1.4 billion revenue to Thor's top line.

What happened

Shareholders of Thor Industries (NYSE: THO) , one of the world's largest recreational-vehicle (RV) manufacturers, were rewarded as the company's stock soared 80% in 2016 after improved top- and bottom-line results and a major acquisition.

Jayco will add $1.4 billion revenue to Thor's top line.

Image source: Thor Industries' Jayco acquisition presentation from July 1, 2016. *As of calendar year 2015 for Jayco. **As of fiscal year 2015 for Thor, continuing operations.

The other major driving force behind Thor's stock-price increase was record business results. Thor posted record sales and bottom-line results in both of its most recent quarters.

During fiscal 2017's first quarter, Thor's top line checked in at $1.71 billion, which was far ahead of analysts' estimates, which called for $1.5 billion. The story was the same for its earnings per share, which checked in at $1.49 per share, far higher than analysts' estimates of $1.23 per share.

Now what

"Fiscal 2017 began like fiscal 2016 ended, with continued robust performance throughout the Company. The strong revenue and earnings growth reflects the ongoing enthusiastic reception of our product offerings by dealers and consumers alike, as well as our ability to effectively manage our growth and integrate acquisitions successfully," said Thor President and CEO Bob Martin in the earnings press release.

Investors should expect another strong year for the RV manufacturer considering its new products from the acquisition as well as today's conditions of cheap gas and an improving economy.

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Daniel Miller has no position in any stocks mentioned. The Motley Fool recommends Thor Industries. 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.

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