Automobile Manufacturing Stocks Q4 Recap: Benchmarking THOR Industries (NYSE:THO)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at THOR Industries (NYSE:THO) and the best and worst performers in the automobile manufacturing industry.

Much capital investment and technical know-how are needed to manufacture functional, safe, and aesthetically pleasing automobiles for the mass market. Barriers to entry are therefore high, and auto manufacturers with economies of scale can boast strong economic moats. However, this doesn’t insulate them from new entrants, as electric vehicles (EVs) have entered the market and are upending it. This has forced established manufacturers to not only contend with emerging EV-first competitors but also decide how much they want to invest in these disruptive technologies, which will likely cannibalize their legacy offerings.

The 11 automobile manufacturing stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 4.4%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.

THOR Industries (NYSE:THO)

Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.

THOR Industries reported revenues of $2.13 billion, up 5.3% year on year. This print exceeded analysts’ expectations by 9%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

"Our fiscal second quarter results reflect continued execution in line with our expectations in a challenging retail environment. The disciplined actions we have taken over the past several quarters to streamline operations, optimize our cost structure and strategically align our product portfolio have positioned us well for our fiscal second half. Even in a down market, our teams continuously demonstrate the ability to drive performance through operational focus and thoughtful capital deployment. The recently announced strategic realignment of our North American RV operations represents an important milestone in our ongoing evolution. This realignment builds upon foundational initiatives already taken, or currently underway, and positions us to further optimize efficiency, enhance collaboration across brands and strengthen our long-term competitive advantages. We believe this is the right time to take this step, ensuring we are structurally prepared to outperform as the market stabilizes and subsequent demand improves," stated Bob Martin, President and Chief Executive Officer of THOR Industries.

THOR Industries delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 10.2% since reporting and currently trades at $85.90.

Is now the time to buy THOR Industries? Access our full analysis of the earnings results here, it’s free.

Best Q4: Winnebago (NYSE:WGO)

Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.

Winnebago reported revenues of $702.7 million, up 12.3% year on year, outperforming analysts’ expectations by 10.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13% since reporting. It currently trades at $35.08.

Is now the time to buy Winnebago? Access our full analysis of the earnings results here, it’s free.

Lucid (NASDAQ:LCID)

Founded by a former Tesla Vice President, Lucid Group (NASDAQ:LCID) designs, manufactures, and sells luxury electric vehicles with long-range capabilities.

Lucid reported revenues of $522.7 million, up 123% year on year, exceeding analysts’ expectations by 17.3%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 3.8% since the results and currently trades at $10.30.

Read our full analysis of Lucid’s results here.

General Motors (NYSE:GM)

Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.

General Motors reported revenues of $45.29 billion, down 5.1% year on year. This print lagged analysts' expectations by 1.1%. More broadly, it was actually a strong quarter as it put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

General Motors had the weakest performance against analyst estimates among its peers. The stock is down 6.3% since reporting and currently trades at $74.40.

Read our full, actionable report on General Motors here, it’s free.

Visteon (NASDAQ:VC)

Originally spun off from Ford Motor Company in 2000, Visteon (NYSE:VC) designs and manufactures cockpit electronics for vehicles, including digital instrument clusters, displays, infotainment systems, and battery management systems.

Visteon reported revenues of $948 million, flat year on year. This number surpassed analysts’ expectations by 2.8%. Aside from that, it was a slower quarter as it produced full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Visteon delivered the highest full-year guidance raise among its peers. The stock is down 13.5% since reporting and currently trades at $91.85.

Read our full, actionable report on Visteon here, it’s free.

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