Why Is Thor Industries Stock Diving After Q2 Results?

Thor Industries, Inc. THO shares are trading lower on Wednesday.

The company reported second-quarter earnings per share of 34 cents, missing the analyst consensus of 67 cents. 

Quarterly revenues of $2.207 billion missed the consensus estimate of $2.267 billion.

North American Towable RV net sales were down 11.9% for the second quarter, while North American Motorized RV net sales decreased 22.8%. European RV net sales increased 20.9% for the second quarter.

Consolidated gross profit margin for the second quarter of fiscal 2024 was 12.3%, an increase of 20 basis points when compared to the second quarter of fiscal 2023.

“During the fiscal second quarter, we continued to sustain production levels that mirror the pace of retail sales, resulting in modest restocking of approximately 4,000 units, far below historical restocking levels for our fiscal second quarter,” said Todd Woelfer, Senior Vice President and Chief Operating Officer. 

In the second quarter of fiscal 2024, due to refinancing the company’s debt facilities on November 15, 2023, including maturity date extensions and interest rate margin reductions, the company incurred total expenses of $14.7 million.

Outlook: Thor Industries reduced its FY24 revenue outlook from $10.5 billion-$11.0 billion to $10.0 billion-$10.5 billion versus $10.65 billion estimate.

The company lowered the FY24 EPS outlook from $6.25-$7.25 to $5.00-$5.50 versus the $6.69 estimate.

Price Action: THO shares are trading lower by 11.15% to $112.48 on the last check Wednesday.