Thor Industries, Inc.’s THO shares grew 1.5% on Sep 28, after the company reported solid fourth-quarter fiscal 2020 results. Both the top and bottom lines not only surpassed the Zacks Consensus Estimate but also grew on a year-over-year basis.
Post fiscal third quarter, it witnessed an increase in retail demand that drove historically low inventories and record high backlog by fiscal 2020-end. Thor remains confident for long as well as short-to-medium-term outlook
Earnings, Revenues & Margin Discussion
Thor reported adjusted earnings of $2.14 per share, which surpassed the consensus estimate of $1.38 by 55.1%. Also, the metric rose 28.1% year over year backed by strong revenues and gross margin.
Thor Industries, Inc. Price, Consensus and EPS Surprise
Thor Industries, Inc. price-consensus-eps-surprise-chart | Thor Industries, Inc. Quote
Net sales of $2.32 billion topped the consensus mark of $2.31 billion by 0.7%. On a year-over-year basis, the top line increased 0.5%, mainly backed by solid European RV segment.
Gross margin came in at 14.9%, which improved 50 basis points (bps) from the year-ago level. This was mainly driven by reduced warranty costs and overhead savings from cost-reduction measures in response to the COVID-19 outbreak, partially offset by an increase in material costs, primarily due to product mix.
North American Towable RVs’ sales of $1.18 billion grew 1.7% from the prior-year period. The segment’s gross margin rose 60 bps to 16.6% from a year ago, driven by lower material and warranty costs as a percentage of North American towable net sales.
At fiscal fourth quarter-end, backlog in the segment totaled $2.76 billion, up almost 300% from $693.2 million reported a year ago.
Sales in the North American Motorized RVs fell 5.4% year over year to $366.5 million due to lower unit sales and a shift in product mix. Nonetheless, gross