On Wednesday, Thor Industries (NYSE:THO) experienced a 3.7% drop following its first-quarter earnings report, which revealed an earnings per share (EPS) of $0.20. This figure fell short of the expected $0.71 by analysts. The company's revenue for the quarter was also below the anticipated number, coming in at $2.14 billion compared to the consensus estimate of $2.25 billion.
Looking to the future, Thor Industries provided guidance for fiscal year 2025, projecting an EPS in the range of $4.00 to $5.00, against the consensus estimate of $4.92. The company also estimates its FY2025 revenue to be between $9.0 billion and $9.8 billion, which is lower than the consensus estimate of $9.62 billion.
According to analysts from Keybanc, Thor Industries' adjusted EPS was $0.51 lower than consensus, and sales were $98.6 million below expectations. The company's Towables segment performed slightly better than anticipated, with sales exceeding consensus by $9.7 million. However, this was overshadowed by a weaker performance in the Motorized segment, where sales were $110.8 million below consensus, reflecting a softer demand from dealers against a backdrop of a generally sluggish industry retail environment.
Additionally, Thor's European results did not meet expectations, falling short by $11.4 million. The company's backlog also decreased by 39% year-over-year, which is a point of consideration for future performance. Gross margin for the quarter stood at 13.1%, which was 145 basis points below the consensus of 14.6%, and operating margin (OM) of 0.5% was 269 basis points under the consensus of 3.2%.
Despite the lower-than-expected results, Thor Industries has maintained its fiscal year 2025 sales and EPS guidance, including gross margins of 14.7-15.2%. The unchanged guidance for FY2025 implies a need for a stronger performance in the second half of the year. Management has noted an increase in optimism among independent dealers following recent industry events, and Thor Industries remains cautiously optimistic about the potential rebound in consumer sentiment that would be necessary to bring the industry back to its baseline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.