#Thor industries updateThere are 10 analysts covering the stock, none have issued a major update since the last earnings report, and the consensus estimates are lagging the forecast to such a degree they are begging to be updated. The analysts rate Thor Industries a solid Hold but we think that could change dramatically in the very near term. The Analysts Are About To Drive Thor Industries Higher With shares already trading at a mere 8X the consensus this stock is grossly undervalued. With record backlogs, acquisitional strength, and cost synergies in the mix we expect Thor Industries to outperform the market consensus by 1500 to 2000 basis points. Management says the RVIA outlook is in line with their own and that Thor Industries should outperform the broader market. Thor Industries did not give specific guidance but referenced the RVIA outlook when making its forward-looking comments. The $4.34 in GAAP earnings is $1.15 better than expected and we see this kind of strength persisting into the coming quarters. Regardless, the company's gross margin expanded by 170 basis points to 16.6% and drove GAAP earnings to record levels and well above the analyst's consensus. This was offset by a weaker 5% increase in European sales that came with a 130 basis point decline in margin. North American Motorized sales rose a stronger 87% and also came with wider margins. On a segment basis, North American Towable sales rose 61% and came with a 240 basis point improvement in margin. The addition of Tiffin last year and Airxcel this year contributed about 800 basis points worth of the growth leaving the bulk to organic demand. in terms of the expectations, the revenue beat the consensus by 1400 basis points on both organic and acquisitional strength. The company reported $3.95 billion in consolidated revenue which is up 55.5% over last year and last year's revenue grew 17% in Q1. What we got was a quarter so strong it is forcing a reevaluation of the coming year. Thor Industries was expected to produce a strong quarter and we ourselves were expecting outperformance versus the consensus estimates. contributor/ - MarketBeat Thor Industries Smashes Through The Consensus If anything, Thor Industries will outperform that forecast and deliver another year of record-setting results for investors. It is worth noting growth will slow to a low single-digit rate but remember, the industry has nearly doubled in the last two years and backlogs are at record levels. The RVIA is forecasting better than 40% industry growth in 2021 on top of double-digit growth in 2020 and looking for growth to continue next year as well. The company has been working hard on organic and acquisitional growth that are both supported by strong secular trends within the industry. Thor Industries (NYSE: THO) has been one of our favorite post-pandemic stories and a market we think is gearing up for another run higher. No Love For Thor Industries Robust Performance
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