Shares of Thor Industries Inc. (NYSE:THO), a manufacturing company specializing in towable and motorized recreational vehicles in the U.S. and Canada, jumped 10% Tuesday as of 11:50 a.m. EDT, after the company released its third-quarter earnings.
Starting from the top, Thor Industries reported a 56.9% jump in year-over-year revenue, up to $2.02 billion during the third quarter. While the percentage gain seems staggering, much of that was due to the acquisition and inclusion of Jayco, acquired last summer. The top line did manage to top analysts' estimates calling for $1.96 billion, per Thomson Reuters. Moving to the bottom line, Thor reported a 41.6% increase in net income from continuing operations, up to $111.3 million, and earnings per share of $2.11. The latter figure easily topped estimates calling for $1.89 per share.
"We continue to see strength in the RV market, as dealers and consumers remain optimistic and the prospects for continued industry growth remain strong," said Bob Martin, Thor's president and CEO, in a press release. "RVs provide exceptional value to consumers, allowing them to enjoy time with family and friends experiencing the many great outdoor spaces in North America at an affordable price point for the average family. Consumers continue to find new uses for RVs."
It was a strong quarter for Thor Industries. And if management can focus on driving sales to its higher-priced units, more consumers adopting the RV lifestyle should provide better margins and long-term bottom-line growth.