Why Is Thor Industries (THO) Down 9.2% Since Last Earnings Report?

Core Insights - Thor Industries reported a significant earnings miss for Q1 fiscal 2025, with earnings of 26 cents per share compared to the consensus estimate of 67 cents, and a decline from 99 cents per share in the same quarter of the previous year [2] - Revenues for the quarter were $2.14 billion, falling short of the expected$ 2.25 billion and representing a 14.3% year-over-year decline [2] Segmental Results - North American Towable RVs generated revenues of $898.8 million, down 4.9% year-over-year, but exceeded estimates of$ 773.6 million [3] - North American Motorized RVs saw revenues of $505.2 million, a 29% decline year-over-year, missing the estimate of$ 550.7 million [5] - European RVs reported revenues of $604.9 million, down 14.6% year-over-year, also missing the estimate of$ 785.1 million [6] Financial Performance - Gross profit for the company totaled $112.4 million, a decrease of 4.7% year-over-year, with pretax income at$ 46.8 million, down from $49.2 million [4] - As of October 31, 2024, Thor had cash and cash equivalents of$ 445.2 million and long-term debt of $1.04 billion [7] Guidance and Outlook - The company reiterated its fiscal 2025 guidance, projecting consolidated net sales between$ 9 billion and $9.8 billion, down from$ 10 billion in fiscal 2024, with expected EPS in the range of $4 to$ 5 [8] - Estimates for the company have trended downward, with a consensus estimate shift of -65.08% over the past month [9] - Thor Industries holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11] VGM Scores - Thor Industries has a Growth Score of B, a Momentum Score of F, and a Value Score of A, placing it in the top 20% for the value investment strategy, resulting in an aggregate VGM Score of B [10]