The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Thor Industries beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.
Margins expanded across the board.
Thor Industries chalked up revenue of $597.0 million. The two analysts polled by S&P Capital IQ anticipated a top line of $566.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $526.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The six earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.25 for Q2 were 150% higher than the prior-year quarter's $0.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.9%, 80 basis points better than the prior-year quarter. Operating margin was 3.4%, 260 basis points better than the prior-year quarter. Net margin was 2.3%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $891.1 million. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $2.96 billion. The average EPS estimate is $2.23.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 200 members out of 234 rating the stock outperform, and 34 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Thor Industries a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Thor Industries is outperform, with an average price target of $32.50.
Over the decades, small-cap stocks like Thor Industries have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Thor Industries to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Will Thor Industries Continue to Climb in 2018?
The recreational vehicle market leader soared in 2017. Here's why its prospects remain bright this year.
3 Stocks to Hold for the Next 20 Years
If you're looking for long-term stocks to buy, check out this trio that look primed for outperformance.
What Happened in the Stock Market Today
On a record day for stocks, Thor Industries and Tech Data soared on strong earnings results.