Why Thor Shares Roared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of recreational vehicle maker Thor Industries (NYSE: THO  ) surged 12% today after its quarterly results easily topped Wall Street expectations.

So what: Thor's first-quarter results were so impressive -- revenue surged 36% to $876.8 million versus the consensus of just $737 million -- that analysts have no choice but to raise their growth estimates yet again. RV demand was hit particularly hard during the first few years of the downturn, but today's report -- sales of towable RVs and motorized RVs surged 28% and 95%, respectively -- reinforces optimism over a prolonged and sustained turnaround.

Now what: Management said that its total RV backlog at the end of the quarter was $516.7 million, up a whopping 73% from the year-ago figure of $299.5 million. "Our higher backlogs provide us with a clearer view into sales expectations through the first half of fiscal 2013," said Chairman and CEO Peter Orthwein. "Given the view of our business through the January quarter, we believe Thor will be well positioned to enter the important spring retail show season." Given Thor's rock-solid balance sheet and still-reasonable forward P/E of 14, Fools shouldn't let today's rally keep them from buying into that bullishness.

Interested in more info on Thor? Add it to your watchlist.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2098164, ~/Articles/ArticleHandler.aspx, 10/2/2014 12:42:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement