What Happened?
Shares of RV manufacturer Thor Industries (NYSE:THO) fell 6.9% in the afternoon session after its strong third-quarter results were overshadowed by a weak full-year forecast. The company posted earnings per share of 41 cents, significantly beating analyst forecasts of a loss, while sales grew 11.5% year on year to $2.39 billion. Although the stock initially traded higher on the positive results, it reversed course. The drop appeared to be linked to the company's forward-looking guidance. THOR Industries reconfirmed its full-year revenue forecast, which at the midpoint was 2.3% below analysts' estimates. Similarly, its full-year earnings per share guidance missed Wall Street's expectations by 1.9%. This weaker-than-expected outlook seemed to worry investors more than the strong quarterly performance pleased them.
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What Is The Market Telling Us
THOR Industries’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 5.5% on the news that the company reported second-quarter 2025 results that surpassed Wall Street's expectations for revenue and profit. The company posted revenue of $2.52 billion, which was flat year on year but beat analyst estimates of $2.32 billion. This performance translated to earnings per share of $2.36, a 40.5% increase from the same period last year and well ahead of the $1.23 consensus estimate. However, the company's outlook for the full year was less optimistic. Management's guidance for full-year revenue, with a midpoint of $9.25 billion, came in below expectations. Similarly, the full-year earnings per share guidance, with a midpoint of $4.00, also fell short of Wall Street's forecasts, signaling potential challenges ahead despite the strong quarterly performance.
THOR Industries is up 6.9% since the beginning of the year, but at $101.01 per share, it is still trading 10.1% below its 52-week high of $112.33 from September 2025. Investors who bought $1,000 worth of THOR Industries’s shares 5 years ago would now be looking at an investment worth $1,061.
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