THOR Industries, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

The yearly results for THOR Industries, Inc. (NYSE:THO) were released last week, making it a good time to revisit its performance. THOR Industries reported US$10b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.94 beat expectations, being 7.9% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for THOR Industries

Taking into account the latest results, THOR Industries' twelve analysts currently expect revenues in 2025 to be US$9.88b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 4.7% to US$5.25. In the lead-up to this report, the analysts had been modelling revenues of US$10.5b and earnings per share (EPS) of US$6.76 in 2025. 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$107, suggesting the downgrades are not expected to have a long-term impact on THOR Industries' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on THOR Industries, with the most bullish analyst valuing it at US$141 and the most bearish at US$80.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 1.6% annualised decline to the end of 2025. That is a notable change from historical growth of 6.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - THOR Industries is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on THOR Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple THOR Industries analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for THOR Industries you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.