Editor’s Note: The following column appears in The Motley Fool tracking LCI Industries’ growth, driven by a booming RV industry.
LCI Industries has a new name, but the company’s focus on serving the booming recreational-vehicle (RV) industry remains in full force. The company formerly known as Drew Industries has done a good job of capturing its fair share of the market for making components and other products that show up in a wide variety of RVs.
Coming into Thursday’s fourth-quarter financial report, LCI investors were expecting that the component maker would continue to participate in the success of the industry, and LCI largely delivered on that front. Let’s look more closely at LCI Industries to see how it did, and what’s ahead for the RV-component specialist in 2017.
LCI Industries’ fourth-quarter results were extremely encouraging to investors. Sales were up 21%, to $403 million, showing an accelerating growth pace and easily topping the consensus forecast for about $376 million in revenue. Net income climbed more than 60%, to $26.3 million, and that worked out to earnings of $1.05 per share. That was 9 cents better than what most investors had expected to see from LCI.
Looking more closely at the numbers, LCI enjoyed success throughout its business. The key original equipment manufacturing (OEM) division matched the 21% growth rate for the entire company, with solid growth in travel trailers and fifth wheels, and especially strong performance in the motorhome arena, where sales jumped by more than a third.
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