Yahoo Finance Thor Industries (THO) Q1 Earnings & Revenues Top Estimates
Thor Industries, Inc. THO reported first-quarter fiscal 2018 (ended Oct 31, 2017) earnings of $2.43 per share, surpassing the Zacks Consensus Estimate of $1.8. Net income soared 63.1% to $128.4 million from $78.7 million in the prior-year quarter.
Revenues rose 30.6% year over year to $2.23 billion and also outpaced the Zacks Consensus Estimate of $1.95 billion.
Gross profit jumped 40.7% to $333.2 million from $236.8 million in first-quarter fiscal 2017. The gross profit margin increased to 14.9% compared with 13.9% in the year-ago quarter, driven by strong production, favorable changes in product mix and selective net price rise.
Thor Industries, Inc. Price, Consensus and EPS Surprise
Thor Industries, Inc. Price, Consensus and EPS Surprise | Thor Industries, Inc. Quote
Segment Results
Sales of Towable RVs went up 33.7% year over year to $1.62 billion. This upside was primarily owing to strong demand for its affordably-priced travel trailers. Pre-tax income shot up 68.7% to $158.9 million from $94.2 million in the comparable quarter, last fiscal. This growth in the metric was backed by higher sales and improved gross margin, decreased selling, general and administrative (SG&A) expenses plus lower amortization expenses.
Sales from Motorized RVs improved 22.8% to $566.6 million from $461.5 million in the year-ago quarter. This upside was driven by robust rise in demand for Class A and Class C motorhomes. Pre-tax income from the segment surged 30% to $37.6 million from $28.9 million a year ago.
Financial Position
Thor Industries had cash and cash equivalents of $151.5 million as of Oct 31, 2017, down from $161.2 million as of Oct 31, 2016. Long-term debt was $90 million as of Oct 31, 2017 compared with $340 million, recorded in the prior-year quarter.
Thor Industries’ operating cash inflow increased to $13.4 million in the first three months of fiscal 2018 compared with $1.3 million during the same period in the previous fiscal.
The company incurred capital expenditures of $34.3 million in first-quarter fiscal 2018, primarily to add and improve land as well as production buildings plus replace old machines and equipment used in business during the quarter.
Zacks Rank & Other Key Picks
Thor Industries sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the auto space include Cummins Inc. CMI, AB Volvo VLVLY and Wabco Holdings Inc. WBC. While Cummins and Volvo flaunt the same bullish Zacks Rank of 1, Wabco Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cummins has an expected long-term growth rate of 12.2%. The stock has seen the Zacks Consensus Estimate for current-quarter earnings per share being revised 2.4% upward over the last 30 days.
Volvo has an expected long-term growth rate of 15%. Year to date, shares of the company have been up 64.7%.
Wabco Holdings has an expected long-term growth rate of 15%. Its shares have been up 38.6%, year to date.
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