Thor Industries Inc (NYSE:THO) got a sizable boost yesterday, having risen $11.40 – or 12.6 percent – to $101.84 at the market close. The recreational vehicle seller released its first-quarter financial results after the market close on Monday, posting higher-than-expected sales during the three-month period – which ended on October 31.
The company’s stock jumped an additional 0.39 percent during after-hours trading yesterday. More than 5.2 million shares of Thor Industries changed hands through the day, soaring past the stock’s daily average of about 780,000 shares.
The Elkhart, Indiana-based company told shareholders that it earned an adjusted $78.7 million during the first quarter of its fiscal 2017 – amounting to $1.49 per diluted share. Earnings grew nearly 65 percent compared to the same quarter of 2016, when Thor Industries posted $50.5 million, or 96 cents per share, in net earnings.
Net revenue grew 66 percent to $1.71 billion, whereas Wall Street analysts – on average – had predicted revenue to amount to $1.51 billion. The consensus estimate projected earnings to be at $1.23 per share, 26 cents below the reported results.
“Starting with our dealer open house in September, our new products have been incredibly well-received, with strong year-over-year sales and backlog growth,” said the company’s President and Chief Executive Officer, Bob Martin. “With continued dealer optimism and steady economic conditions, we believe 2017 will be one of the strongest years for wholesale shipments for the industry since the 1970s.”
Mr. Martin told CNBC’s “Mad Money” yesterday that a big part of Thor’s success can be attributed to the growing number of young people camping more – including millennials. From the company’s point of view, it’s great that younger customers are getting hooked on the camping habit at earlier ages. The lifelong cycle of RV buying starts from there, according to Thor’s CEO.
“They typically trade into another unit, typically a larger unit, and for us that is just great news for the long-term of the RV industry as a whole,” Martin added.
According to Martin, younger RV buyers are using their new moving homes for unconventional purposes, such as tailgating outside of sports events – and even passing up Black Friday to participate in “Campsgiving.”
The author does not have any positions in the above mentioned companies.