Thor Industries misses by $0.36, beats on revs; sees tough comps in 1H19
- Reports Q4 (Jul) earnings of $1.67 per share, $0.36 worse than the S&P Capital IQ Consensus of $2.03; revenues fell 3.2% year/year to $1.87 bln vs the $1.85 bln S&P Capital IQ Consensus. Net sales for the fourth quarter were flat for the Towable segment, down 13.2% for the Motorized segment and declined 3.1% overall. Overall gross profit margin decreased to 13.0% compared to 15.6% in the prior year.
- "Our fourth quarter results reflect the actions taken during the period to balance dealer inventory levels," added Martin. "We believe our reduced production levels, combined with higher promotional costs and solid retail demand, have improved the position of our dealers' inventories as they enter the new model year and prepare for the upcoming Dealer Open House. "While labor costs began to moderate during the latter part of fiscal 2018, they remained elevated on a year-over-year basis.
- "However, due to dealer order strength experienced in the first half of fiscal 2018, we are planning for tougher year-over-year comparisons in the first half of fiscal 2019 with more favorable top-line growth rates in the second half of the fiscal year. Similar to the quarterly progression of our top line, we anticipate gross margin pressure to be greater in the first half of the year... Although we expect to have some near-term growth challenges, our industry's end-market demand trends continue to remain very favorable."
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