Thor Industries, INC | $THO Stock | Shares Driven Lower After Earnings

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Thor Industries Photo

Thor Industries, Inc. (THO:NYSE)

 

On Wednesday June 6th, 2018 Thor Industries reported their fiscal third quarter earnings after the market closed. The company announced record sales numbers which were up 11.7% year over year ago period.

Sales tallied at  $2.25 billion dollars. However the shares sold off on the earnings numbers mainly due to the fact that analysts had been expecting $2.65 per share and came in at $2.53 per share.

Shares closed at $98.44 per share in the regular trading session which was up 2.70% on the day.  However in the after-market session, shares closed down -7.3% or down -7.19, closing at $91.25.

Comments from the CEO

Bob Martin, Thor President and CEO had this to say to investors:

“Our third quarter results reflect another period of solid growth of both sales and earnings We continue to leverage the strength in industry demand to drive the year-over-year growth in both our top and bottom lines. While labor costs have moderated, we are experiencing inflationary price increases in certain raw material and commodity-based components due in large part to the headwinds created by the announcement and implementation of the steel and aluminum tariffs and other regulatory actions, as well as higher warranty costs. We will continue to manage these input factors through a combination of strategic actions and believe, over time, we will be able to offset these cost increases.

Our consolidated backlog is currently at a healthy level and reflects normalized, on-going demand throughout our product portfolio. As anticipated, the production expansion projects completed over the past several quarters have improved product delivery times to our dealers, and we expect this trend to continue in subsequent quarters. Furthermore, our added capacity and normalized backlog will provide us with the ability to realize the benefits associated with a more stable production environment.”

 

The Charts

The above price chart shows Thor in the regular trading session on the left and the after our session on the right.

It is easy to see how shares trended higher in the regular session after an early morning sell off.  Then, shares dropped precipitously soon after the earnings numbers were announced.

 

The above price chart shows Thor in the daily price action going back a number of months. It is easy to see how shares were trying to turn up on the daily chart.

However, now that the earnings numbers have come out it seems as though they will open much lower in the red zone.

 

Company Profile

Thor Industries, Inc., through its subsidiaries, designs, manufactures, and sells recreational vehicles, and related parts and accessories primarily in the United States and Canada.

It operates through Towable Recreational Vehicles and Motorized Recreational Vehicles segments.

The company offers travel trailers under the Airstream Classic, International, Tommy Bahama, Flying Cloud, Sport, and Basecamp trade names, as well as Interstate series of Class B motorhomes; gasoline and diesel Class A and Class C motorhomes under the Four Winds, Hurricane, Chateau, Windsport, Axis, Vegas, Tuscany, Palazzo, Aria, Quantum, Compass, Gemini, A.C.E., Alante, Precept, Greyhawk, and Redhawk trade names; and luxury Class A motorhomes under Insignia, Aspire, Anthem, and Cornerstone trade names.

It also provides conventional travel trailers and fifth wheels under the Montana, Springdale, Hideout, Sprinter, Outback, Laredo, Bullet, Fuzion, Raptor, Passport, Cougar, Coleman, Kodiak, Aspen Trail, Aerolite, Voltage, Cruiser, Volante, Sunset Trail, Zinger, Landmark, Bighorn, Elkridge, Trail Runner, North Trail, Cyclone, Torque, Prowler, Wilderness, Shadow Cruiser, Fun Finder, MPG, Radiance, Stryker, Sportsmen, Spree, Venom, Durango, SportTrek, Connect, Sportster, Sonic, Jay Flight, Jay Feather, Eagle, Pinnacle, Seismic, Launch, Autumn Ridge, Solstice, Highlander, Mesa Ridge, and Open Range trade names; and luxury fifth wheels under the Redwood and DRV Mobile Suites trade names.

In addition, the company offers equestrian recreational vehicle products with living quarters under trade names, such as Premiere, Silverado, Ranger, Laredo, Trail Boss, and Trail Hand; and lightweight travel trailers and specialty products under Camplite and Quicksilver trade names.

Further, it provides aluminum extrusion and specialized component products. The company markets its recreational vehicles through independent dealers. Thor Industries, Inc. was founded in 1980 and is based in Elkhart, Indiana.  -YahooFinance

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