Thor Industries' stock set to rally after profit beat, but sales came up a bit shy
Shares of Thor Industries Inc. were indicated up over 2% in premarket trading Monday, after the recreational vehicle maker reported a fiscal fourth-quarter profit that topped expectations, but sales that missed. Net income for the quarter to July 31 rose to $92.1 million, or $1.67 a share, from $88.2 million, or $1.67 a share, in the same period a year ago. The FactSet consensus for net earnings per share was $1.47. Sales grew to $2.31 billion from $1.87 billion, just shy of the FactSet consensus of $2.33 billion. North American Towable RV sales fell 18% to $1.16 billion, below the FactSet consensus of $1.21 billion; N/A motorized RV sales declined 8% to $387.4 million, above expectations of $357.2 million; and Erwin Hymer Group (EHG) sales totaled $719.5 million, missing expectations of $767.0 million. "For fiscal 2020, we expect to see strong top-line growth with the addition of a full year of net sales from EHG, but since the dealer inventory adjustment may continue through the first half of our fiscal year, our outlook is for a flat to modest decline in the North American markets in the near-term, barring a significant macroeconomic change," said Chief Executive Bob Martin. The stock has shed 5.9% year to date through Friday, while the S&P 500 has advanced 18.2%.
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