Thor Falls After Profit Misses Estimates: Detroit Mover
Thor Industries Inc. (THO) fell the most in almost seven months after the maker of Airstream recreational vehicles and Champion buses reported a fiscal first-quarter profit that fell short of analysts’ estimates.
The shares slid 10 percent to $39.18 at 10:50 a.m. New York time after plunging 12 percent, the biggest intraday decline since May 3. The company had gained 59 percent this year through yesterday, while the Standard & Poor’s Midcap Consumer Discretionary Index rose 22 percent.
Thor, based in Jackson Center, Ohio, reported quarterly net income of $31 million, or 58 cents a share, in a statement after the markets closed yesterday. The average of six analysts’ projections compiled by Bloomberg was 62 cents a share for the period ended Oct. 31.
Sales of recreational vehicles are monitored as a sign of an improving economy because motor homes and travel trailers are discretionary purchases that consumers defer during a slump.
“The RV and bus markets remain very competitive, with heightened discounting and aggressive bidding affecting sales and margins,” Chief Operating Officer Bob Martin said in yesterday’s statement.
The company said in preliminary quarterly results on Nov. 5 that quarterly sales increased 30 percent, which spurred the shares to gain 10 percent the following day.
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