Shares of recreational vehicle manufacturer Thor Industries Inc. fell nearly 10% during the regular trading session Tuesday (March 7) as Wall Street focused on the company’s shrinking profit margins. Thor stock continued to retreat in early trading today.
CNBC reported that gross profit margins fell to 13.3% in the fiscal second quarter, down from 15.3% in the year-ago period, Thor said in its earnings release Monday.
The company attributed the narrower profit margin primarily to its acquisition last June of Jayco Inc. for about $576 million in cash. The Indiana-based company reported quarterly earnings and revenue above expectations.
For the fiscal second quarter, its earnings of $1.23 per share beat Thomson Reuters estimates by a penny. Sales of $1.59 billion also beat a Reuters consensus estimate of $1.51 billion.
Despite Tuesday’s losses, shares of Thor held gains of more than 80% over the past 12 months.