Thor (THO) Stock Up 8.8% Since Q4 Earnings Beat, Backlog Robust

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Thor Industries, Inc.’s THO shares have gained 8.8% since it posted solid fourth-quarter fiscal 2021 (ended Jul 31, 2021) results on Sep 28, before the opening bell. The recreational vehicle (RV) maker not only delivered a comprehensive beat but also recorded massive year-over-year growth in earnings, sales and backlog.

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Thor posted adjusted earnings of $4.12 per share, which beat the Zacks Consensus Estimate of $2.91. This outperformance can be attributed to higher-than-anticipated revenues across all its segments. The bottom line jumped 92.5% from the year-ago profit of $2.14 per share. The company registered revenues of $3,593 million for the quarter under review, topping the Zacks Consensus Estimate of $3,274 million. The top line recorded a 54.6% year-over-year increase.

Segmental Results

North American Towable RVsRevenues from the segment came in at $1,730.6 million, surging 46.4% year over year on the back of robust shipments and benefits from the Tiffin Group buyout. The top line also surpassed the Zacks Consensus Estimate of $1,665 million. Pretax profit totaled $202.2 million, up from $129.2 million recorded in the year-ago period, thanks to higher sales and improved gross profit margins. At quarter-end, the unit’s total backlog was $9.28 billion, skyrocketing from $2.76 billion as of Jul 31, 2020.

North American Motorized RVsRevenues from the segment totaled $823.1 million, which skyrocketed 124.6% year over year, thanks to higher unit sales and the Tiffin Group buyout benefits. The top line also outpaced the consensus mark of $735 million. Pretax profit came in at $62.3 million, up from $24.3 million recorded in the year-ago period. Backlog in the segment summed $4.01 billion, jumping from $1.45 billion as of Jul 31, 2020.

European RVs: Revenues from the segment came in at $969.8 million, up 31.1% from the year-ago period driven by higher unit shipments and a favorable product mix. The top line also beat the consensus mark of $869 million. The segment generated a net profit of $67.8 million, surging 138.8% year over year. Backlog of the segment was $3.56 billion, reflecting massive growth from $1.53 billion recorded on Jul 31, 2020.

Financials and Consolidated Backlog

As of Jul 31, 2021, Thor — which shares space with Winnebago Industries WGOLCI Industries LCII, and Skyline Corporation SKY in the same industry — had cash and cash equivalents of $448.7 million, and long-term debt of $1,594.8 million. Consolidated backlog as of quarter-end was $16.86 billion, reflecting a meteoric year-over-year rise of 190%. Thor currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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