Why Thor Shares Are Jumping: Towable RVs Sales Fall In North America, Spike In EU
Portfolio Pulse from Nabaparna Bhattacharya
Thor Industries, Inc. (NYSE:THO) reported a 19.5% year-on-year decline in Q1 FY24 sales to $2.501 billion, missing estimates of $2.53 billion. North American Towable and Motorized RV sales dropped by 28.3% and 36.7% respectively, while European RV sales rose by 40.4%. EPS was 99 cents, below the expected $1.05. Gross profit margin fell to 14.3%. Despite the miss, Thor reiterated its FY24 sales outlook of $10.5 billion to $11 billion and EPS forecast of $6.25 to $7.25. THO shares rose by 6.66% to $109.99.
December 06, 2023 | 5:11 pm
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Thor Industries reported lower sales and earnings than expected, but European RV sales increased significantly. The company maintained its FY24 guidance, which may have reassured investors, leading to a rise in stock price.
The short-term impact on THO's stock is positive despite the earnings miss, likely due to the strong performance in the European market and the company's confidence in maintaining its FY24 outlook. This suggests that investors are focusing on the potential for future growth and stability rather than the current decline in sales and earnings.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100