Shares of Thor Industries dropped today (Oct. 5) after RW Baird downgraded the stock in the wake of the company’s earnings report.
Thor shares closed down $1.19 at $26.51.
The brokerage house trimmed its 2005 earnings estimates and slashed its rating on the Jackson Center, Ohio-based manufacturer to “neutral,” citing margin concerns related to Thor’s market share and competitive outlook.
RW Baird said the downgrade is near term, but in the long term it considers Thor to be “well positioned in an attractive industry.”
On Monday, Thor shares rallied after the company easily surpassed Wall Street expectations, posting a 44 percent rise in fourth-quarter earnings as a surge in RV revenue offset a slight decline in bus sales.
Thor said it earned 56 cents a share, vs. 39 cents a year ago. Revenue came in at $625.1 million, up from $422.5 million in the a year earlier. Analysts polled by Thomson First Call were looking for a profit of 53 cents a share on sales of nearly $608 million.