Thor Industries Inc. has been the favorite RV company stock as far as investors are considered, as indicated by the fact the New York Stock Exchange-listed company’s shares reached new 52-week highs on some occasions during the last few weeks.
And the upward trend continued today (Aug. 19) following the announcement that Thor had reached an agreement to buy closely held Class A motorhome manufacturer Damon Corp. for $46 million.
Word of the deal may have leaked out prior to today’s announcement as indicated by the fact Thor stock gained $1.34 a share Monday (Aug. 18) to close at $46.14, after reaching a new 52-week high of $46.58.
But as of the noon hour Eastern Time today, Thor stock was up another $1.32 a share at $47.46, after reaching a new 52-week high of $47.48 during today’s trading session.
Wall Street apparently likes the Damon deal because Thor Chairman Wade Thompson said the Damon acquisition will add about 20 cents to Thor’s earnings per share (EPS) for its fiscal year 2004, which began on Aug. 1.
During the 12 months ended April 30, Thor’s EPS was $2.70, Thompson said.
Because Thor has a little more than 28.6 million shares outstanding, an increase of 20 cents per share is equivalent to an additional $5.7 milion in net earnings for the company annually.
During the nine months ended April 30, Thor’s net earnings totaled $56.4 million and its EPS amounted to $1.98 for the nine-month period.
Thor has not yet revealed its earnings for the May-through-July period.
Thor has released its sales revenue total for its fiscal year 2003, which ended July 31. Its fiscal year 2003 sales totaled $1.57 billion, an amount that included $1.35 billion in RV sales and $217 million in mid-size transit bus sales.
The Damon acquisition will add about $200 million to Thor’s annual sales.