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The stock of the world's largest recreational vehicle (RV) maker, Thor Industries (NYSE: THO), was looking a bit diminished over the past five trading days. After it posted financial results that disappointed the market, investors traded out of the veteran company. They left its shares with a loss of almost 14% across the week, according to data compiled by S&P Global Market Intelligence.
Wrong turn
For Thor's second quarter of fiscal 2025, net sales saw an almost 9% year-over-year decline to slightly more than $2 billion. More dramatically, the company made a swerve into a loss on the bottom line -- it posted a GAAP net loss of $551,000 ($0.01 per share) against the $7.2 million profit it booked in the same quarter of fiscal 2024.
Analysts tracking Thor stock were expecting the company to land comfortably in the black, to the tune of $0.08 per share for the period. On a slightly brighter note, they underestimated net sales; their collective projection for the metric was $1.97 billion.
Thor cited the broader economy as a headwind for the company during the quarter. It quoted CEO Bob Martin as saying: "As the challenging economic environment persists, our actions remain focused on what we can control: the products that we offer and the relationships that we foster with dealers and retail customers."
Unrealized potential
Thor also reduced some aspects of its guidance for the entirety of the fiscal year. It is modeling a net sales figure of $9 billion to $9.5 billion, with the latter figure down from the previous guidance of $9.8 billion. The per-share earnings estimate has been lowered to a range of $3.30 to $4.00, where formerly it was $4.00 to $5.00.
None of these results were impressive. However, Thor remains an important producer in its niche. The American public is still eager to have experiences like travel, so it feels to me like there's market to be captured here. I wouldn't necessarily give up on this stock, despite the very forgettable quarter.
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