Market Commentary and Intraday News
Ahead of the Bell: Thor shares gain on earnings
234 days ago
(AP:NEW YORK) Shares of Thor Industries jumped more than 10 percent in premarket trading, after the company reported better-than-expected fiscal fourth-quarter results due to stronger demand for its recreational vehicles.
For the quarter ended July 31, Thor's net income jumped 20 percent to $44.4 million, or 84 cents per share. Revenue rose 15 percent to $888.2 million, as RV sales increased 18 percent to nearly $770 million.
Analysts polled by FactSet expected a profit of 79 cents per share on $886.8 million in revenue.
The Jackson Center, Ohio-based company is one of the world's largest manufacturers of RVs and a major builder of commercial buses and ambulances. It said that if the broader economy remains stable, it expects sales of RVs and replacement buses to continue to grow.
But revenue gains have come at a cost, said Wedbush analyst Rommel Dionisio, who said that Thor has been running lots of sales incentives as competition increases in the RV market. He kept a "Neutral" rating and $33 price target on the stock.
Thor shares rose $3.85, or 11 percent, to $38.26 in premarket trading. The stock is up 25 percent in 2012.
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