• Wed. Oct 27th, 2021

Expectation to actual valuation: Thor Industries, Inc. (NYSE: THO)

On 08 May 2020, Thor Industries, Inc. (NYSE: THO) stock observed trading -13.94% off 52-week high price. On the other end, the stock has been noted 138.33% away from low price over the last 52-weeks. The stock disclosed a move of 44.79% away from 50 day moving average and 25.50% away from 200 day moving average. Moving closer, we can see that shares have been trading 32.96% off 20-day moving average. It has market cap of $4469.46M and dividend yield of 2.08%.

Thor Industries, Inc. (THO) recently reported results for the second quarter of fiscal 2020, which ended January 31, 2020.

Second-Quarter Highlights

Second-quarter net sales were $2.0B, up $712.6M, or 55.2%, from the second quarter of fiscal 2019. This increase includes the addition of $637.1M in net sales from the European RV section and a raise of $102.3M in net sales in the North American Towable RV section, partially offset by a decrease of $27.8M in net sales in the North American Motorized RV section.

Consolidated gross profit margin was 12.8% for the second quarter of fiscal 2020, contrast to 11.0% in the corresponding period a year ago. This reflects the positive impact of ongoing, management-led actions to reduce material and labor costs as a percentage of sales in both North American RV sections and the addition of 12.5% gross profit margin from the European RV section.

Net income attributable to Thor and diluted earnings per share for the second quarter of fiscal 2020 were $28.7M and $0.52, respectively, contrast to a net loss and diluted loss per share of $(5.4M) and $(0.10), respectively, in the prior-year period. Results for the second quarter of fiscal 2020 included the impact of two non-cash impairment charges totaling $10.1M, or $0.15 per diluted share, as well as incremental interest expense and amortization of intangibles related to the acquisition of EHG totaling $39.3M, or $0.57 per diluted share. Fiscal 2019 second-quarter results were adversely influenced by costs related to the acquisition of EHG which, in aggregate, totaled $42.1M, or $0.75 per diluted share.

The Company’s effective income tax rate for the second quarter of fiscal 2020 was 22.5%. The Company expects a worldwide effective tax rate for the entire 2020 fiscal year ranging between 20% and 23%, before consideration of any unknown discrete tax items.

Independent dealer inventory levels of Thor products in North America reduced by 16.5% to about 115,200 units as of January 31, 2020, from about 137,900 units as of January 31, 2019. Management believes that the North American independent dealer inventory rationalization of the past 18 months is now largely complete, and orders for the remainder of calendar 2020 are predictable to be in line with consumer demand. Management also believes that independent dealer inventory levels of EHG products in Europe have rationalized and are also now generally appropriate for seasonal consumer demand moving into the peak selling season.

“Our second-quarter financial results for the North American Towable RV section include impairment charges related to two pending planned divestitures – the pending sale of a property which was no longer being utilized, and the pending sale of Bison Coach, a manufacturer of horse trailers, which no longer fit within our portfolio of businesses. These pending divestitures, which are predictable to be completed previous to July 31, 2020, resulted in non-cash impairment charges totaling $10.1M, or $0.15 per diluted share,” stated Colleen Zuhl, Thor’s Senior Vice President and Chief Financial Officer.

“We have made principal payments of $155M on our Term Loan B (“TLB”) debt during the first half of our fiscal year, and, subsequent to the close of the second quarter, we made additional principal payments on our TLB of about $32M. Life to date, total payments on our acquisition-related debt total about $530M. We continue to expect to make additional important principal payments on our remaining acquisition-related debt in the second half of our fiscal year.”

 The USA based company Thor Industries, Inc. moved with change of 11.78% to $76.98 with the total traded volume of 1988452 shares in recent session versus to an average volume of 1096.12K. THO’s shares are at -5.23% for the quarter and driving a 24.12% return over the course of the past year and is now at 3.62% since this point in 2018.  Right now the stock beta is 2.51. The average volatility for the week and month was at 5.71% and 6.31% respectively.


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