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Thor Industries Stock Spikes After Surprise Profit

Thor shares spiked after the recreational-vehicle producer reported a surprise third-quarter profit.
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Shares of Thor Industries  (THO) - Get Free Report rose Monday after the recreational-vehicle maker  reported stronger-than-expected fiscal-third-quarter results. 

For the quarter ended April 30 the Elkhart, Ind., company reported earnings of 43 cents a share, down from 59 cents in the year-earlier period. Sales of $1.68 billion declined from $2.51 billion. 

Analysts surveyed by FactSet were expecting a net loss of 20 cents a share on revenue of $1.64 billion.

"Our financial position has remained strong as a result of numerous management-led actions that were executed quickly in conjunction with our temporary plant shutdowns in mid-March," said Chief Executive Bob Martin in a statement. 

The company suspended global production in March and April due to the impact of the coronavirus. The company warned about the pandemic's impact on third -results.

North America towable-RV sales fell to $773.4 million for the third quarter from $1.24 billion a year earlier. North America motorized-RV sales were $264 million compared with $459.2 million. 

The company's European segment saw a smaller decline, with RV sales falling to $615.3 million from $767.5 million.

"Our business was built with the ability to manage through cyclicality, and our management actions, combined with our highly variable cost model, allowed us to remain profitable and generate positive net cash from operations for the third quarter," Chief Financial Officer Colleen Zuhl said.

Thor Industries shares at last check rose 11% to $110.84.

The stock is up more than 50% year to date and up even more since mid-March when it said it was shutting down production temporarily. 

Throughout late April and May the company went about restarting production.