Thor Industries stock jumped on Q3 results Wednesday as North American RV sales powered higher. REV Group, a manufacturer of ambulances, fire trucks, buses and other specialty vehicles, also surged on its report.
Thor Industries
Thor Industries reported a nearly 19% increase in earnings to $2.53 per share adjusted on 3.3% sales growth to $2.89 billion.
FactSet analysts expected earnings of $1.79 per share on $2.6 billion in revenue.
North American towable RV sales increased 9.1% for the quarter, while unit shipments rose 5.5%. The company's towable RV backlog declined 14.4% to $634.3 million.
Motorized RV sales in North America increased 3.1%. Unit shipments for the segment increased 10.9%. Thor's backlog for motorized RVs declined 4.5% to $883.7 million.
European RV sales fell 5.1%, while unit shipments fell 12.2% for the quarter. The order backlog for European RVs tumbled 30.6% to $1.34 billion.
CEO Bob Martin in the release said he expects a "challenging" fourth quarter and first quarter, as economic uncertainty pressures consumer confidence. Thor expects that once the uncertainty is resolved, consumer confidence will improve and a "strong retail environment" will return.
The company maintained its full-year outlook for net sales between $9 billion and $9.5 billion. Thor expects earnings to range from $3.30 to $4 per share.
FactSet analysts expect earnings of $3.48 per share on $9.24 billion in revenue.
Thor shares jumped more than 12% early Wednesday, then pared gains to 4.3%. Shares advanced 4% on Tuesday.
THO stock has rebounded 36% from an early April low, but remains down 10.2% for the year. It has shown healthy recent support at its 21-day exponential moving average, according to MarketSurge charts.
Motor home and RV rival Winnebago Industries surged 2.5% Wednesday. WGO stock is down almost 27% so far this year.
Thor's average true range ratio is 3.2%, while Winnebago's is 3.44%.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
REV Group
REV Group on Wednesday reported a 79% increase in earnings to 70 cents per share. Revenue rose about 2% to $629.1 million.
FactSet expected earnings of 57 cents per share on $603.5 million in sales.
Revenue for REV's specialty vehicles segment increased 3.8% to $453.9 million, due to increased shipments in firefighting vehicles. Excluding the impacts from its bus manufacturing business on Q2 2024 results, specialty vehicle sales were up 12.2% from last year.
Recreational vehicle sales declined 2.4% to $175.3 million. REV Group said the decline was driven by lower unit shipments and increased dealer assistance, which was partially offset by pricing actions.
The company lifted its 2025 outlook slightly with the report. REV Group now expects sales to range from $2.35 billion to $2.45 billion, compared to its prior forecast for $2.3 billion to $2.4 billion in sales. The company forecasts free cash flow between $100 million and $120 million for the year. Its prior outlook called for $90 million to $110 million in free cash flow.
REVG stock rallied 15.4% to record highs Wednesday and shot out of a buy zone for a consolidation.
Shares initially broke out above the 36 buy point on May 7. The stock briefly cleared the buy zone in mid-May before easing back into the area by the end of the month.
REVG stock has a 21-Day ATR of 2.62%.
REV Group is up almost 35% so far this year.
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