Thor Industries THO is scheduled to release second-quarter fiscal 2023 results on Mar 7, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $1.10 and $2.53 billion, respectively.
The Zacks Consensus Estimate for Thor’s fiscal second-quarter earnings per share has been revised lower by 9 cents in the past 30 days. The bottom line projection implies a year-over-year drop of 77.04%. The Zacks Consensus Estimate for revenues suggests a year-over-year decline of 34.67%.
This Indiana-based company, the largest manufacturer of recreational vehicles (RVs) in the world, posted better-than-expected earnings in the last reported quarter on higher-than-anticipated revenues and gross profits from its North American Motorized and European RV segments. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average being 28.45%. This is depicted in the graph below:
Thor Industries, Inc. Price and EPS Surprise
Thor Industries, Inc. price-eps-surprise | Thor Industries, Inc. Quote
Factors to Shape Q2 Results
The RV industry regained its momentum during the pandemic, but now it strives to keep up with the pace due to unprecedented economic conditions. As the fears of an economic slowdown, triggered by sky-high inflation and rising interest rates, engulf the industry, Thor is not likely to have escaped the aftermath of it for the to-be-reported quarter. The number of RV units sold by Thor in the fiscal second quarter of 2023 is likely to have declined from the year-ago period. While commodity inflation might have played spoilsport, smart pricing actions undertaken by the company are expected to have offset the impact of the same to some extent.
Here’s a look at the estimates for key segmental metrics of the company.
The Zacks Consensus Estimate for fiscal second-quarter 2023 revenues from the North American Motorized RVs segment is pegged at $1,040 million, indicating a rise from $977 million recorded in the year-ago period. The consensus mark for revenues from the North American Towable RVs unit is $1,120 million, down from $1,985 recorded in the year-ago period. The consensus mark for revenues from the European RV segment is $547 million, indicating a decrease from $724 million registered in the year-ago period. Supply constraints and shortages of various RV components are more conspicuous in Thor’s European segment.
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 -7.97%. This is because the Most Accurate Estimate is pegged 9 cents lower 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 #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Whispers for Peers
REV Group REVG has an Earnings ESP of 0.00% and a Zacks Rank #3. The stock is slated to report fiscal first-quarter 2023 earnings on Mar 8.
The Zacks Consensus Estimate for REV Group’s to-be-reported quarter’s earnings and revenues is pegged at 1 cent per share and $504.73 million, respectively. REVG surpassed earnings estimates in three of the last four quarters and missed in one, with the average negative surprise being 1.68%.
Winnebago Industries WGO has an Earnings ESP of -13.64% and a Zacks Rank #4.
The Zacks Consensus Estimate for Winnebago’s to-be-reported quarter’s earnings and revenues is pegged at $1.38 per share and $780.74 million, respectively. Encouragingly, WGO surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.48%.
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