Shares of Thor Industries Inc. (NYSE:THO) were up 13.3% as of 2:50 p.m. EST Tuesday after the recreational vehicle manufacturer announced stronger-than-expected fiscal first-quarter 2017 results.
Quarterly revenue jumped 65.8% year over year, to $1.71 billion -- well above expectations for revenue of $1.5 billion -- driven by continued strong demand and contributions from its acquisition of Jayco earlier this year. That translated to 55.9% growth in net income, to $78.7 million, or $1.49 per diluted share.
"Fiscal 2017 began like fiscal 2016 ended, with continued robust performance throughout the company," said Thor Industries CEO Bob Martin. "The strong revenue and earnings growth reflects the ongoing enthusiastic reception of our product offerings by dealers and consumers alike, as well as our ability to effectively manage our growth and integrate acquisitions successfully."
What's more, though Thor management didn't provide specific forward guidance, the company believes strong demand for its products will result in the need for additional production capacity through the remainder of the year.
Thor CFO Colleen Zuhl added, "We intend to be prudent in investing our cash to ensure we have the ability to meet demand while also further reducing our debt."
In the end, this is an undeniably strong report from Thor Industries. And even with shares up more than 80% year to date -- albeit trading at a reasonable 19 times trailing 12-month earnings -- it's no surprise to see happy investors bidding up the stock on Tuesday.