Thor Industries shares surge 5% on earnings beat despite soft outlook

Shares of Thor Industries gained Wednesday after the recreational-vehicle (RV) maker reported stronger-than-expected fourth-quarter results, even as the company issued a cautious outlook for the year ahead.The stock rose 5.8% to $108.18, putting it on pace for its biggest one-day percentage gain in a month. Including the session’s move, Thor shares are up 14% so far in 2025.Earnings beat expectationsFor the fiscal fourth quarter ended July 31, Thor reported adjusted earnings of $2.36 a share, far ahead of the $1.28 analysts surveyed by FactSet had expected. The result also marked a 40.5% year-over-year increase.Net sales were $2.52 billion, essentially flat compared with $2.53 billion a year earlier, but well above Wall Street’s estimate of $2.32 billion. Data compiled by LSEG showed that four of 17 brokerages currently rate Thor stock a “buy” or higher, while 11 assign a “hold” rating and two a “sell,” with a median price target of $93.Performance across business segments was mixed. North American towable RV sales fell 4.6%, while sales of motorized RVs climbed 7.8%. Thor owns well-known brands such as Airstream and Heartland RV.Cautious guidance amid market pressuresDespite the earnings beat, Thor maintained a guarded outlook for fiscal 2026, citing uncertainty in the broader economy. “With multiple data points suggesting weakness emerging in the job market, we think it is prudent to plan for another challenging year,” said Seth Woolf, Thor’s head of corporate development and investor relations.The company guided for full-year earnings in the range of $3.75 to $4.25 per share, with the top end of the range in line with analysts’ consensus of $4.25. Revenue is projected between $9 billion and $9.5 billion, below the FactSet estimate of $9.63 billion.Thor pointed to affordability as one of the biggest challenges in the marketplace, particularly given that RVs are large discretionary purchases that typically require financing. “We continue to be cautious regarding the macroeconomic outlook and its associated impacts on consumer demand and in particular on the appetite for big-ticket discretionary purchases like RVs,” the company said.Any upside in fiscal 2026, Thor added, is more likely to come from company-specific initiatives rather than a supportive retail environment.Broader market and industry reactionThe upbeat earnings report provided a lift to peers in the recreational products sector. Winnebago shares gained 2.9%, while boat makers Malibu Boats and Brunswick also traded higher. The S&P 500 index was trading in the red on Wednesday.Citi Research analyst James Hardiman recently highlighted affordability as a critical factor influencing demand trends in powersports and recreational vehicles. As most buyers take out loans for such purchases, product price inflation has been compounded by higher financing costs in recent years.For Thor, the strong quarterly earnings helped offset investor concerns about the weaker forward guidance. The company’s stock, which remains above analysts’ median price target, continues to reflect a balance of resilient performance in the face of challenging consumer conditions and cautious expectations for the year ahead.The post Thor Industries shares surge 5% on earnings beat despite soft outlook appeared first on Invezz