Why Is Thor Industries (THO) Up 3% Since Last Earnings Report?

Core Viewpoint - Thor Industries reported strong earnings for Q4 fiscal 2025, significantly beating expectations, but experienced a slight decline in revenues year-over-year [2][8]. Financial Performance - Earnings per share for Q4 fiscal 2025 were $2.31, surpassing the Zacks Consensus Estimate of $1.16 and up from $1.68 in Q4 fiscal 2024 [2]. - Total revenues for Q4 were $2.52 billion, exceeding the Zacks Consensus Estimate of $2.31 billion, but down 0.4% from the previous year [2]. Segmental Results - North American Towable RVs: Revenues were $888.7 million, a decrease of 4.6% year-over-year, but above the estimate of $825.6 million [3]. - North American Motorized RVs: Revenues increased by 7.8% year-over-year to $557.4 million, exceeding the estimate of $504 million [5]. - European RVs: Revenues were $923 million, down 2.2% year-over-year, but above the estimate of $856.3 million [6]. Profitability Metrics - Gross profit for the company totaled $118.6 million, a 1% increase year-over-year, driven by reduced warranty and promotional expenses [4]. - Pretax income rose to $74.5 million from $50.9 million in the previous year, primarily due to improved gross profits [4]. Backlog and Cash Position - Total backlog at the end of the quarter was $525 million, down from $552.4 million a year earlier [4]. - Cash and cash equivalents stood at $586.6 million, with long-term debt of $919.6 million as of July 31, 2025 [7]. Guidance and Future Outlook - For fiscal 2026, Thor Industries projects consolidated net sales between $9 billion and $9.5 billion, down from $9.6 billion in fiscal 2025, with EPS expected to range from $3.75 to $4.25 compared to $4.84 in fiscal 2025 [8]. - There has been a downward trend in estimates revisions, with the consensus estimate shifting down by 9.43% [9][10]. Investment Scores - Thor Industries holds a strong Growth Score of A but has a lower Momentum Score of C, with an overall VGM Score of A [11].