Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
On Thursday, Thor Industries Inc. (NYSE:THO) experienced a decline in share price following the announcement of missed earnings for the second quarter of fiscal year 2025 and a reduction in earnings per share (EPS) guidance for the full year. The stock, currently trading at $82.76, has fallen 17.1% in the past week and is approaching its 52-week low of $78.88. The company, known for manufacturing recreational vehicles (RVs), has been facing slower order patterns amid a challenging retail demand outlook for 2025.According to InvestingPro analysis, THO’s RSI indicates oversold conditions, suggesting potential value for investors looking beyond current market pessimism. InvestingPro offers 12 additional investment tips for THO, available to subscribers.
DA Davidson analyst Michael Shlisky responded to Thor Industries’ financial updates by adjusting the price target for the company’s stock. The new target is set at $80, down from the previous target of $95, while the firm’s rating on the stock remains at Neutral. Shlisky’s analysis highlighted the alignment between Thor Industries’ performance and recent observations from RV market checks. Despite market challenges, THO maintains strong fundamentals with a healthy current ratio of 1.71 and a 39-year track record of consistent dividend payments.
Thor Industries’ stock movement comes in the wake of their announcement, which indicated a downturn in future expectations. The company’s adjustment to its fiscal year 2025 EPS guidance suggests a cautious approach in navigating the current macroeconomic environment. Shlisky noted that the potential for price increases could impact affordability for consumers, which is a factor in the maintained Neutral stance on the stock.
The revised price target of $80 by DA Davidson is based on a price-to-earnings (P/E) multiple of 16.0 times the firm’s forecasted fiscal year 2026 earnings of $5.00 per share. This forecast is a decrease of $1.35 from the consensus earnings estimate of $5.70 per share. The new target reflects the firm’s adjusted expectations for Thor Industries’ financial performance in the coming year.
In other recent news, Thor Industries reported its fiscal second-quarter earnings, which fell short of analyst expectations, posting a loss of $0.01 per share against the anticipated earnings of $0.08 per share. However, the company exceeded revenue forecasts with $2.02 billion, surpassing the expected $1.97 billion. Despite this revenue beat, Thor Industries revised its full-year fiscal 2025 guidance downward, now projecting net sales between $9.0 billion and $9.5 billion, and adjusted its earnings per share guidance to a range of $3.30 to $4.00. This revision reflects ongoing macroeconomic challenges affecting its North American Motorized and European segments.
Analysts have responded to these developments with various adjustments to their outlooks. BMO Capital Markets reduced its price target for Thor Industries to $105 from $120, maintaining an Outperform rating, while Truist Securities cut its target to $90 from $110, holding a Hold rating. KeyBanc Capital Markets maintained a Sector Weight rating, noting the mixed financial results and expressing caution due to the stock’s current valuation. These recent developments highlight the challenges Thor Industries faces in the current economic climate, with analysts closely monitoring the company’s performance and guidance adjustments.
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