THOR Industries, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, THOR Industries, Inc. (NYSE:THO) last week released its latest second-quarter, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with US$2.2b revenue coming in 2.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.13 missed the mark badly, arriving some 80% below what was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for THOR Industries

Following last week's earnings report, THOR Industries' twelve analysts are forecasting 2024 revenues to be US$10.2b, approximately in line with the last 12 months. Statutory per share are forecast to be US$5.17, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$10.6b and earnings per share (EPS) of US$6.67 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analysts made no major changes to their price target of US$108, suggesting the downgrades are not expected to have a long-term impact on THOR Industries' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on THOR Industries, with the most bullish analyst valuing it at US$141 and the most bearish at US$87.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.1% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. It's pretty clear that THOR Industries' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for THOR Industries. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$108, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple THOR Industries analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with THOR Industries .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.