THO +1.80%Dec. 08, 2021 9:51 AM ET
- Thor Industries (THO +0.6%) after reporting an earnings beat and 55.5% revenue growth driven by higher sales in North America following recent acquisitions.
- By segment: North American Towable RV segment (+61%); North American Motorized RV segment (+87%); European RV segment (+5%). The addition of Tiffin Group accounted for 47% of the increase in increase in North American Motorized RV net sales.
- Consolidated gross profit margin increased 170 bps to 16.6% primarily driven by the increase in net sales, a reduction in sales discounts since the prior-year period and selective net selling price increases.
- "It seems the market focuses on the supply chain and labor challenges that our industry is facing right now more than it does our performance in the face of those challenges, but our performance has been consistent despite those challenges," commented CEO Bob Martin.
- The company's 88,100 RV deliveries outpaced the RV industry's growth rate of shipments. Global order backlog increased to more than $18B, reaffirming Thor's view that the dealer restocking process could possibly extend into calendar 2023.
- Read what Thor's outlook for the full 2022 fiscal year here.
There's a hidden gem. THO is in a pretty good trend as people are using RV's to live in. They are on a great growth path and $720M in profits is over 10% of their $6Bn market cap at $106. They are super-attractive over the option prices too so, for the Future is Now Portfolio (where no one can afford a proper home anymore), let's:
- Sell 5 THO 2024 $100 puts for $22 ($11,000)
- Buy 10 THO 2024 $100 calls for $30 ($30,000)
- Sell 10 THO 2024 $130 calls for $17.50 ($17,500)
That's net $1,500 on the $30,000 spread that's $8,500 in the money to start.
