Thor (THO) Q4 Earnings Breeze Past Estimates, Surge Y/Y

Thor Industries THO delivered a comprehensive beat for fourth-quarter fiscal 2022 (ended Jul 31, 2022). The recreational vehicle (RV) maker posted adjusted earnings of $5.15 per share, which comfortably surpassed the Zacks Consensus Estimate of $4.13. This outperformance can be largely attributed to higher-than-anticipated revenues and gross profits from North American Motorized RVs segment. This marked the 10th straight earnings beat for Thor. The bottom line soared 25% from the year-ago profit of $4.12 per share. The company registered revenues of $3,821.7 million for the quarter under review, topping the Zacks Consensus Estimate of $3,792 million. The top line also increased 6.4% year over year.

Segmental Results

North American Towable RVsRevenues from the segment came in at $1,795.9 million, up 3.8% year over year on the back of robust shipments and benefits from the Tiffin Group buyout. The top line, however, missed the Zacks Consensus Estimate of $1,806 million. Gross profit totaled $273 million, falling short of the consensus mark of $300 million. Pretax profit totaled $181.6 million, down from $202.2 million recorded in the year-ago period amid lower gross profit margins.  At quarter-end, the unit’s total backlog was $2.57 billion, declining sharply from $9.3 billion as of Jul 31, 2021.

North American Motorized RVsRevenues from the segment totaled $1,024.7 million, which rose 24.5% year over year, thanks to higher unit sales and the Tiffin Group buyout benefits. The top line also outpaced the consensus mark of $1,005 million. Gross profit totaled $184 million, beating the consensus mark of $129 million. Consequently, pretax profit came in at $127.4 million, more than doubling from $62.3 million recorded in the year-ago period. Backlog in the segment was $3.44 billion, down from $4.01 billion as of Jul 31, 2021.

European RVs: Revenues from the segment came in at $806.7 million, down 16.8% from the year-ago period. The top line also missed the consensus mark of $835 million. Gross profit of $152.5 million declined 0.7% year over year but topped the consensus mark of $129 million. The segment incurred a pretax income of $74.8 million, higher than the year-ago level of $67.8 million. The backlog of the segment was $2.75 billion, reflecting a drop from $3.55 billion recorded on Jul 31, 2021.

Financials

As of Jul 31, 2022, Thor had cash and cash equivalents of $311.7 million and long-term debt of $1,754.2 million. During the fiscal fourth quarter, the company boosted buyback by $450 million, raising the total authorization to approximately $700 million.During fiscal 2022, THO repurchased $165.1 million of common stock.

Peer Releases

Skyline Champion SKY: Skyline announced its first-quarter fiscal 2023 results on Aug 2. The company came out with adjusted earnings of $2.04 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares with earnings of 75 cents per share a year ago. Revenues of $725.88 million for the quarter ended June 2022 surpassed the Zacks Consensus Estimate by 5.41% and compared favorably with the year-ago quarter revenues of $510.2 million.

As of Jul 2, 2022, Skyline had $463.8 million of cash and cash equivalents. SKY surpassed earnings estimates in the last four quarters, with the average being 44.1%.

REV Group REVG: REV Group released fiscal third-quarter 2022 results on Sep 7. It came out with adjusted earnings of 24 cents per share, beating the Zacks Consensus Estimate of 21 cents per share. This compares with earnings of 37 cents per share a year ago. Revenues of $594.8 million for the quarter ended July 2022 were in line with the Zacks Consensus Estimate. In the corresponding quarter of fiscal 2021, revenues totaled $593.3 million.

As of Jul 31, REVG had $14.8 million of cash and cash equivalents. REV Group surpassed earnings estimates in two of the last four quarters for as many misses, with the negative average being 5.3%.


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