NYSE$THO

Thor Industries Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Thor Industries reported record second-quarter revenues, improved gross profit margin, and a growing order backlog.

Thor Industries announced strong second-quarter results with record revenues of $2.0 billion, a gross profit margin improvement of 180 basis points, and diluted earnings per share of $0.52. The company's performance was driven by increased sales in the North American Towable RV segment and the addition of net sales from the European RV segment. The company is closely monitoring Coronavirus.

  • Net sales for the second quarter were $2.0 billion, up 55.2% compared to the prior year.
  • Gross profit margin improved to 12.8%, an increase of 180 basis points year-over-year.
  • Diluted earnings per share increased to $0.52, compared to a loss of $(0.10) per diluted share in the prior year.
  • Independent dealer inventory levels in North America decreased by 16.5% year-over-year.

Headline financials

Total Revenue

$2B

Previous: $1.29B+55.2%
EPS (adj)

$0.67

Previous: $0.65+3.1%
Gross Margin

12.8%

Previous: 11.0%+16.4%
Capital Expenditures

-$52.9M

Previous: -$54.8M+3.5%
Free Cash Flow

-$47.6M

Previous: $79.8M-159.6%
Net Income

$28.7M

Previous: $8.54M+235.9%
Operating Income

$60.8M

Previous: $44M+38.1%
Gross Profit

$256M

Previous: $142M+81.1%
Cash & Equivalents

$242M

Previous: $306M-20.8%
Total Assets

$5.63B

Previous: $2.73B+106.2%
Stock-Based Comp

$5.06M

Previous: $4.96M+2.1%

Revenue & EPS history

Thor · Revenue · Quarterly

$2B

Q2 2020+55.2%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Thor · $1.96B total across 3 segments · Q2 2020

  • North American Towable
    $984M+11.6%
  • European
    $637M
  • North American Motorized
    $344M-7.5%

Forward guidance

Absent the uncertainties related to coronavirus, as we enter the peak selling quarters of our fiscal year in both North America and Europe, we are optimistic about our Company, our products and the global RV marketplace

Tailwinds

  • New Class B products are performing well at retail.
  • Dealer inventories have largely rationalized and are building ahead of the peak selling season.
  • Record attendance at several early-season RV consumer shows in North America and Europe.
  • Germany, Europe's leading RV market, continues to report strong RV industry growth.
  • Delivered solid results for the first half of the fiscal year.

Headwinds

  • Sharp increase in concern and market reaction related to the coronavirus.
  • Potential effect on supply chains, particularly for materials sourced from China or other areas facing increased infection rates.
  • Potential impact on domestic and global economies.
  • Monitoring the situation on a daily basis and putting in place various action items, including travel limitations.
  • Evaluating and arranging alternative supply sources for all critical parts with potential supply concerns.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-1.1%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+18.7%

Q3 2023

Best reaction

-18.7%

Q2 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+3.1%+0.0%
Q2 2026-6.6%-9.8%-19.2%
Q1 2026-9.4%-5.7%-4.3%
Q4 2025+6.2%+2.6%+8.4%
Q3 2025+0.0%+3.2%+6.4%
Q2 2025-14.5%-13.8%-25.0%
Q1 2025-4.1%-2.5%-10.9%
Q4 2024+3.1%+6.6%+1.5%
Q3 2024+1.7%+0.8%-4.1%
Q2 2024-15.9%-18.4%-11.2%
Q1 2024+4.0%+5.9%+7.1%
Q4 2023-0.1%+2.4%-5.7%
Q3 2023+18.7%+18.1%+27.7%
Q2 2023-4.5%-10.1%-17.7%
Q1 2023-6.4%-0.1%-0.9%
Q4 2022-4.0%-2.8%+15.1%
Q3 2022+0.5%-8.1%+8.5%
Q2 2022+4.5%-2.7%-3.8%
Q1 2022-3.5%-4.1%+0.0%
Q4 2021+13.0%+12.4%-7.7%
Q3 2021-0.7%-2.5%-7.9%
Q2 2021+3.0%+8.5%+5.4%
Q1 2021-4.4%-3.4%+3.3%
Q4 2020+1.1%+7.2%-5.6%
Q3 2020+10.8%+6.8%+1.5%
Q2 2020-18.7%-28.8%-32.2%
Q1 2020+0.4%+1.6%+3.0%
Q4 2019+15.6%+12.6%+33.2%
Q3 2019+0.0%-1.8%+3.4%
Q2 2019-2.0%+2.4%-0.7%
Q1 2019-4.0%-12.4%-15.9%
Q4 2018-15.7%-18.2%-28.9%
Q3 2018+5.2%+5.9%+3.4%
Q2 2018-1.0%+4.3%-7.1%
Q1 2018+12.6%+10.6%+11.0%
Q4 2017+5.0%+9.1%+15.1%
Q3 2017+11.3%+9.3%+12.0%
Q2 2017-8.7%-12.6%-20.3%
Q1 2017+12.3%+11.9%+11.2%
Q4 2016+4.9%+3.7%-1.3%
Q3 2016+6.4%+3.3%+7.6%
Q2 2016+6.3%
Q1 2016+5.1%
Q4 2015-5.0%
Q3 2015-7.6%
Q2 2015-1.6%
Q1 2015-5.5%
Q4 2014-0.9%
Q3 2014-3.8%
Q2 2014+3.0%
Q1 2014-0.9%
Q4 2013+3.2%
Q3 2013+12.3%
Q2 2013-1.6%
Q1 2013-9.6%
Q4 2012+6.3%
Q3 2012-3.5%
Q2 2012+4.8%
Q1 2012-2.5%
Q4 2009+14.5%
Q4 2011+14.5%
Q4 2010+14.5%
Q3 2010-1.6%
Q3 2011-1.6%
Q2 2011-2.4%
Q2 2010-11.3%
Q1 2010-11.3%
Q1 2011-11.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro