THOR Industries slips after warning on tough macro backdrop ahead

THOR Industries (NYSE:THO) traded lower in premarket action on Tuesday after the company set guidance ranges alongside its FQ4 earnings report with a midpoint below the expectations of analysts.

Looking ahead, the Indiana-based company sees 2024 consolidated sales of $10.5B to $11.0B vs. $10.9B consensus and full-year EPS of $6.25 to $7.25 vs. $7.15 consensus. Consolidated gross profit margin is seen landing in the range of 14.5% to 15.0%.

THOR Industries (THO) management warned on a rocky road ahead due to macroeconomic factors and cautious dealer sentiment. “Despite mixed economic data and consumer trends that are expected to continue into fiscal 2024, our experienced operating management teams and proven business model continue to give us an advantage in navigating uncertainty,” updated Martin. THOR Industries (THO) plans to take a very disciplined approach to production planning while employing its variable cost model to prioritize profitability in the coming fiscal year. The company’s strong balance sheet and cash generation profile are seen enabling it to invest in growth initiatives and drive enhanced shareholder value.

Despite the expectation for softer demand, THOR Industries (THO) plans to stay aggressive and make significant investments in its future in FY24, resulting in incremental research and development spend. While the investment will impact EPS projections for FY24, it is also anticipated to create significant upside in the longer term.

Shares of THOR Industries (THO) fell 2.66% in premarket trading to $92.30 vs. the 52-week trading range of $67.09 to $116.31.