Please ensure Javascript is enabled for purposes of website accessibility

Why Thor Stock Thundered 11% Higher Today

By Rich Smith – Jun 8, 2020 at 5:17PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Thor was supposed to lose money. It earned a lot instead.

What happened

Shares of Thor Industries (THO -0.44%) closed 11.1% higher on Monday, after the RV maker reported estimate-thumping earnings earlier in the day.

Expected by analysts to report a $0.26-per-share loss on sales of $1.68 billion, Thor matched the sales prediction to the penny -- but beat earnings with a stick, delivering $0.43 per share to the bottom line.  

Winnebago-style RV driving through a valley

Image source: Getty Images.

So what

Sales for the fiscal third quarter 2020 declined 33% year over year, and profits were down 27%. Still, that was much less bad than the quarterly loss that Wall Street had predicted.  

CEO Bob Martin called Q3 "one of the most unusual quarters I have ever experienced," and yet still a good one, in which the company both reported profits and generated cash despite a pandemic that locked down Thor's "retail consumers ... under strict shelter-in-place requirements in most North American and European locations."

"Shipments ... were disrupted in the second half of March and April, two of our normally strongest sales and shipment months," lamented the CEO. Yet while sales and profits were affected, the damage was much less than investors had feared.

Now what

Looking ahead to the rest of the year, Thor declined to give specific sales or earnings guidance. That being said, Martin is feeling "increasingly positive."

"Every North American dealer I have spoken to in the last few weeks," continued the CEO, "has been very excited about the pace at which sales are picking up. Many of our dealers are reporting a significant improvement in sales from April to May and are excited about the sales potential for June and beyond." Accordingly, "the balance of our fiscal year and the calendar year has markedly improved."

It remains to be seen by just how much

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Thor Industries Stock Quote
Thor Industries
$72.01 (-0.44%) $0.32

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.