What happened
Shares of Thor Industries Inc. (THO 0.75%) rose 15.9% in September, according to data from S&P Global Market Intelligence, after the recreational vehicle specialist delivered record quarterly results.
More specifically, shares rallied late in the month after Thor Industries confirmed that its fiscal fourth-quarter revenue climbed 49.7% year over year to $1.93 billion, which translated to 43.9% growth in net income to $119.5 million, or $2.26 per share. Both figures effectively crushed Wall Street's prediction for earnings of $1.95 per share on revenue of $1.84 billion.
IMAGE SOURCE: THOR INDUSTRIES.
So what
Growth during the quarter was driven by a combination of organic sales increases in both towable and motorized RVs, as well as two incremental months of results from Jayco, which Thor Industries acquired on June 30 of last year.
"Thor completed another year of exceptional growth, supported by strong demand from dealers and consumers for our products, notably our expanded lines of more affordably priced towable and motorized RVs," explained Thor CEO Bob Martin. "These products are attracting more types of customers, including Baby Boomers and Millennials, to take part in the RV lifestyle, with its great value and opportunity to share life-enriching experiences with friends and family."
Now what
Thor also offered more good news for forward-looking investors, with industry demand expected to remain strong as a higher number and more types of consumers continue to embrace the RV lifestyle.
While it didn't offer specific financial guidance, Thor believes that industrywide RV shipments should climb around 10% to 12% year over year in calendar 2017. Coupled with higher demand for entry-level RVs and its enviable portfolio of products and brands, it appears Thor is well positioned to continue to deliver market-beating gains going forward.
