Analysts Split Ahead of Thor Earnings

Thor Industries completed its acquisition of AirX Intermediate this month

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Thor Industries (NYSE:THO) is an American manufacturer of recreational vehicles. THO sells towable and motorized RVs through its subsidiary brands including Airstream, Heartland RV, Jayco, Livin Lite RV, and others. Thor Industries' headquarters is in Elkhart, Indiana. The company has manufacturing facilities in Michigan, Ohio, Indiana, Idaho, and Oregon. This afternoon, THO is trading up 1.3% at $113.07.

On Sept. 1, Thor Industries announced its acquisition of AirX Intermediate. Airxcel manufactures a line of RV products which they sell to original equipment manufacturers as well as consumers via aftermarket sales through dealers and retailers. The purchase price of AirX was $750 million, subject to standard post-closing adjustments, and was funded through a combination of cash-on-hand and $625 million from Thor's expanded Asset-Based Credit Facility.

Furthermore, Thor Industries has beat earnings expectations on all four of its most recent earnings reports. For Q3 of 2020, THO beat analyst estimates by a margin of $0.80, reporting an EPS of $2.14. In Q4 of 2020, Thor Industries' EPS decreased to $2.05, still beating expectations by a margin of $0.49. The following quarter, THO had an increase in earnings, rising to $2.38 per share. The RV company also beat estimates by a margin of $0.83. In their most recent quarter Thor Industries reported an EPS of $3.29 and beat expectations by a margin of $0.95. Analysts have the company’s EPS coming in at $2.93 for their upcoming earnings report on Sept. 27.

Thor Industries stock has increased approximately 22% in price year-over-year is up 43% since bottoming at an annual low of $78.64 last November. Additionally, shares of THO have grown 20% year-to-date, but Thor stock is currently down by 26% from its mid-March three-year high of $152.20. Moreover, Thor Industries offers a forward dividend of $1.64 and a dividend yield of 1.46%.

From a fundamental point of view, Thor industries stock offers an intriguing valuation. Thor Industries stock trades at a low price-earnings ratio of 11.43 and THO has a forward price-earnings ratio of 10.37, indicating an expected increase in earnings.

Analysts are split on the equity, too. Heading into today, five of the nine in coverage sport a "hold" or "strong sell" recommendation, while the remaining four boast a "strong buy."


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