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Why Is Thor Industries (THO) Up 4.9% Since Last Earnings Report?

It has been about a month since the last earnings report for Thor Industries (THO). Shares have added about 4.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Thor Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Thor Puts Up A Stellar Q1 Show

Thor reported first-quarter fiscal 2021 (ended Oct 31, 2020) adjusted earnings of $2.05 per share, which surpassed the Zacks Consensus Estimate of $1.46. This outperformance can be attributed to higher-than-anticipated revenues across all its segments. The bottom line also jumped 123% from the year-ago profit of 92 cents. This RV maker registered revenues of $2,537 million for the quarter under review, beating the Zacks Consensus Estimate of $2,379 million. Moreover, the top line recorded a 17.5% year-over-year increase.

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As of Oct 31, 2020, Thor had cash and cash equivalents of $340.2 million and a long-term debt of $1,585 million. Consolidated backlog totaled $8.92 billion at quarter-end, representing a 194.5% jump from the year-ago period.

Segmental Results

North American Towable RVs: Revenues from the segment came in at $1,392 million, up 15.8% year over year on the back of robust shipments. The top line also surpassed the Zacks Consensus Estimate of $1,353 million. Pretax profit totaled $141.2 million, up from $104.3 million recorded in the year-ago period. At quarter-end, total backlog of the unit was $4.4 billion, which skyrocketed 312.1% from the year-ago period.

North American Motorized RVs: Revenues from the segment totaled $493.9 million, which reflected year-over-year growth of 18.7% on the back of higher unit sales in Class B/C motorhomes. The top line also outpaced the consensus mark of $419 million. Pretax profit came in at $41.6 million, up from $21.8 million recorded in the year-ago period. Backlog in the segment summed $2.22 billion, up a whopping 230.6% from the year-ago period.

European RVs: Revenues from the segment came in at $602.5 million, up 22.1% from the year-ago period driven by higher unit shipments, favorable product mix and forex translations. The top line also beat the consensus mark of $557 million. The segment incurred a net loss of $5.5 million, narrower than the year-ago loss of $23 million due to lower SG&A costs and higher sales. Backlog of the segment was $2.31 as of Oct 31, depicting year-over-year growth of 78.7%

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 21.05% due to these changes.

VGM Scores

At this time, Thor Industries has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Thor Industries has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.


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