Update: Truist Cuts Price Target on Thor Industries to $90 From $110, Keeps Hold Rating

Thor Industries, Inc. THO reported a loss of 1 cent per share for the second quarter of fiscal 2025 (ended Jan. 31, 2025), in contrast to the Zacks Consensus Estimate of earnings of 7 cents. The company reported earnings of 40 cents per share in the corresponding quarter of fiscal 2024.

The company registered revenues of $2.02 billion for the fiscal second quarter, beating the Zacks Consensus Estimate of $1.97 billion. The top line, however, declined 8.6% year over year.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Thor Industries, Inc. Price, Consensus and EPS Surprise

Thor Industries, Inc. price-consensus-eps-surprise-chart | Thor Industries, Inc. Quote

Segmental Results

North American Towable RVs: Revenues from the segment came in at $828.3 million, up 13.3% year over year due to an increase in unit shipments. The figure also beat our estimate of $624 million.

Gross profit totaled $91.6 million, up 70% year over year. The pretax income totaled $28.2 million, up from $661,000 recorded in the year-ago period, primarily due to an increase in net sales and net favorable impacts of reduced sales discounting and cost-saving initiatives. The unit’s total backlog was $1.07 billion at the quarter's end, up from $836.2 million as of Jan. 31, 2024.

North American Motorized RVs: Revenues from the segment totaled $446.3 million, which fell 21.8% year over year, owing to a decrease in unit shipments. The figure, however, surpassed our estimate of $405.6 million.

Gross profit totaled $34.7 million, down 42.8% year over year due to a decrease in net sales. Consequently, pretax profit came in at $4.3 million, down 83.8% from the year-ago period. The segment’s backlog was $1.12 billion, up from $1.07 billion as of Jan. 31, 2024.

European RVs: Revenues from the segment came in at $612.5 million, down 21.7% from the year-ago period due to a decline in unit shipments. The figure also missed our estimate of $827.5 million.

Gross profit of $80.9 million fell 32.2% year over year. The segment reported a pretax income of $2.2 million, lower than the year-ago pretax income of $38 million. The backlog of the segment was $1.64 billion, which declined from $2.75 billion recorded as of Jan. 31, 2024.

Financials

As of Jan. 31, 2025, Thor had cash and cash equivalents of $373.8 million and long-term debt of $1 billion.

The company reported an operating cash inflow of $30.8 million compared with an operating cash outflow of $103.9 million reported in the corresponding quarter of 2024.

Thor Updates Fiscal 2025 Guidance

Thor now projects its fiscal 2025 consolidated net sales in the range of $9-$9.5 billion, down from the previously estimated range of $9-$9.8 billion. The consolidated gross profit margin is expected in the band of 13.8-14.5%, down from the previously estimated range of 14.7-15.2%. EPS is expected in the range of $3.30-$4, down from the previous guidance of $4-$5.

THO’s Zacks Rank & Other Key Picks

Thor carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Dana Incorporated DAN and Strattec Security Corporation STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 15 cents and 38 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 70.21%. EPS estimates for 2025 and 2026 have improved 10 cents each in the past 30 days.

The Zacks Consensus Estimate for STRT’s 2025 sales indicates year-over-year growth of 2.61%. EPS estimates for 2025 and 2026 have improved 91 cents and $1.06, respectively, in the past 30 days.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

(16:01 GMT) Thor Industries Price Target Cut to $90.00/Share From $110.00 by Truist Securities

(15:34 GMT) Thor Industries Price Target Cut to $105.00/Share From $120.00 by BMO Capital