Stock News Buzz: Thor Industries (NYSE:THO)

On Monday Thor Industries (NYSE:THO) stock recorded daily change of -5.15% to close at $64.28 with the total traded volume of 2672026 shares along average volume of 765862 shares 52 week range of the stock remained $ 42.05 – 71.66 while its day low price was $64.23 and its hit its day high price at $69.88. Its previous closing value stands at $67.77. THO total market capitalization is $3548191652. Currently stocks EPS is $2.47 while its price to earnings ratio is 26.06.

On Dec. 9, 2019, Thor Industries (NYSE:THO) revealed results for the first quarter of fiscal 2020 ended October 31, 2019.

In our fiscal first quarter, we achieved a pronounced improvement in our operating results, reflecting the benefits of the flexible and highly variable cost model we have developed, as we increased gross profit margins in our North American RV segments despite modest decreases in net sales, commented Bob Martin, President and CEO of Thor Industries. EHG’s results for the quarter were generally in line with expectations as EHG has historically generated flat-to-negative first quarter results due to the European holiday shutdowns that occur in August, and due to the higher concentration of marketing and advertising expenses in the fiscal first quarter to support the annual RV shows in Europe. Industry conditions in North America continued to improve as the independent dealer inventory rationalization that has affected our results over the past year nears its end. Dealer optimism is strong in both the North American and European markets with excellent feedback from our September Open House in Elkhart, Indiana, and positive performance at industry wholesale and retail shows in Germany and across the United States. We look forward to continuing that momentum as the spring RV show season starts in North America in January and the European selling season begins.

First Quarter Highlights

First-quarter net sales were $2.16 billion, an increase of $402.8 million, or 22.9%, from the first quarter of fiscal 2019. The addition of $493.0 million in net sales from the European RV segment was partially offset by net sales decreases of 6.1% and 3.6% in the North American Towable RV and the North American Motorized RV segments, respectively.

Consolidated gross profit margin was 14.3% for the quarter, compared to 11.8% in the prior-year period, primarily reflecting favorable overall product mix and reductions in material, labor and warranty cost percentages in the North American RV segment, tempered by the gross profit margin from the European RV segment, which was lower than the overall North American gross margin for the current quarter.

Net income attributable to Thor and diluted earnings per share for the first quarter of fiscal 2020 were $51.1 million and $0.92, respectively, compared to $14.0 million and $0.26, respectively, in the prior period. Results for the first quarter of fiscal 2020 included incremental interest expense and amortization of intangibles related to the acquisition of EHG amounting to $39.7 million, or $0.58 per diluted share, while first quarter fiscal 2019 results were adversely impacted by a foreign currency forward contract loss and costs related to the acquisition of EHG which, in aggregate, totaled $57.1 million, or $1.02 per diluted share.

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