Post-Earnings Coverage: Thor Impresses Shareholders

Thor Industries Post Record Revenue Riding on Strong Recreational Vehicle Demand

LONDON, UK / ACCESSWIRE / June 7, 2016 / ActiveWallSt.com announces its post-earnings coverage on Thor Industries, Inc. (NYSE: THO). The company announced its Q3 FY16 earnings results on Monday, June 06, 2016. The Elkhart, Indiana based company reported earnings of $1.51 per share beating analyst’ consensus estimate of $1.43 per share for the quarter ended on April 30, 2016. Revenue grew 9.4% on y-o-y basis to a record $1.28 billion, slightly missing analyst’s estimate of revenue of $1.29 billion. Register with us now for your free membership and see our complete reports on these equities at:

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Earnings Numbers

For Q3 FY16, Thor Industries’ net income from continuing operations increased 24.6% to $79.2 million on y-o-y basis. Diluted earnings per share from continuing operations in Q3 FY16 increased 26.9% as compared to year ago period. Gross profit margins increased to 15.7% on y-o-y basis, primarily due to improved volumes, favourable changes in product mix and improvements in material costs.

Thor industries’ motorized Recreational Vehicle (RV) segment posted sales of $307.6 million up 20.7% on y-o-y basis, the company attributed the record results on strong dealer and consumer responses to new products launches such as moderately priced gasoline-powered motorhomes in Class A and Class C categories targeting new consumers entering the market.

On the other hand, towable RV unit’s sales coming at $934.6 million for Q3 FY16, up 1.7% from $919.4 million in from the year ago period partially offset by lower sales of fifth wheel units. For Q3 FY16, Thor industries reported total dealer inventory of 82,100 units, up 1% as compared to year ago period, as dealers continued to boost inventories anticipating strong demand.

The Growth Story Continues

The RV industry has seen sustained growth after the lows of the great recession in 2009. In 2015, RV shipments from manufacturers to dealers came at 374,246 units, their ‘best annual total since 2006’ according to the Recreation Vehicle Industry Association. There are number of macroeconomic factors resulting helping the surge in demand such as, the increasing number of baby boomers are retiring with a number of them favouring to retire traveling in RVs, low interest rates, falling gasoline prices, stable economic condition and lower cost of raw material.

With favourable economic condition and gas prices which are expected to remain lower for short to medium term, Thor Industries, the largest manufacturer of RV in the U.S., looks all set to capitalize on favourable conditions, alongside other major RV manufacturers such as Wiinnebago (NYSE: WGO), Supreme Industries (NYSE: STS) and Forest River owned by Berkshire Hathaway Inc. (NYSE: BRK.B).

Thor industry has been profitable every year since its inception in 1980. For the trailing twelve months, Thor posted a return on equity of 21%, its best result since 2006.

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