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Thor (THO) to Report Q3 Earnings: What's in the Offing?

Thor Industries THO is scheduled to release third-quarter fiscal 2023 results on Jun 6, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.13 and $2.84 billion, respectively.

The Zacks Consensus Estimate for Thor’s fiscal third-quarter earnings per share has been revised higher by 3 cents in the past 30 days. The bottom-line projection, however, implies a year-over-year deterioration of 82.12%. The Zacks Consensus Estimate for revenues also suggests a year-over-year decline of 39.06%.

The largest manufacturer of recreational vehicles (RVs) in the world, based in Indiana, posted lower-than-expected earnings in the last reported quarter on lower-than-anticipated revenues from its North American Towable RVs and North American Motorized RVs segments. The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average being 4.59%. This is depicted in the graph below:

Thor Industries, Inc. Price and EPS Surprise

 

Thor Industries, Inc. Price and EPS Surprise
Thor Industries, Inc. Price and EPS Surprise

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

 

Factors to Shape Q3 Results

Buyouts of EHG and TiffinHomes are providing Thor with attractive long-term growth opportunities. Commercial and operational synergies from both buyouts are likely to have buoyed Thor’s third-quarter result.

On the flip side, amid economic uncertainties, customers have been cutting down on discretionary expenses. Thor’s third-quarter results are likely to have been adversely affected by its declining backlog. Also, the firm has been bearing the brunt of escalating selling, general and administrative expenses for the past few years. The trend is expected to have continued in the quarter under review and is also likely to have limited Thor’s operating margin.

Here’s a look at the estimates for key segmental metrics of the company.

The Zacks Consensus Estimate for third-quarter fiscal 2023 revenues from the North American Motorized RVs segment is pegged at $831 million, indicating a decline from $1,053 million recorded in the year-ago period. The consensus mark for revenues from the North American Towable RVs unit is $1,354 million, down from $2,640 recorded in the year-ago period. The consensus mark for revenues from the European RV segment is $637 million, indicating a decrease from $724 million registered in the year-ago period.

What Does Our Model Say

Our proven model does not conclusively predict an earnings beat for Thor in the to-be-reported quarter, as it does not have the right combination of the two key ingredients. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Thor has an Earnings ESP of +1.38%. This is because the Most Accurate Estimate is pegged 2 cents higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Thor currently carries a Zacks Rank of #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Whispers for Another Auto Company

NIO NIO will release first-quarter fiscal 2023 results on Jun 9. The company has an Earnings ESP of 0.00% and a Zacks Rank #3.

The Zacks Consensus Estimate for NIO’s to-be-reported quarter’s loss and revenues is pegged at 22 cents per share and $1.69 billion, respectively.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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