Thor Industries Down 11% This Week, But It’s Still Up 38% YTD

This week we’re seeing shares of recreational vehicle and bus maker Thor Industries Inc. (THO) skidding towards the exits after a disappointing fiscal first quarter — the stock is down about 11% so far.

That’s a scary drop, but while Thor might be down for the time being, it’s certainly not out.

Even in after its plunge, the stock is still trucking, up 38% in 2012 and 64% in the past year as consumers begin to loosen their belts and step back into the leisure arena.

These positives have analysts watching Thor with increasing optimism.

R.W. Baird�s Craig Kennison, who has a Neutral rating for Thor and $43 price target, wrote on Tuesday that confidence among dealers bolsters bullish sentiment on Thor:

Dealer inventory in Thor products increased 14% as dealers bet on a recovery…After a long de-stocking period, management characterized inventory levels as �appropriate.”

Meanwhile, in a note sent Monday analyst Rommel Dionisio of Wedbush Securities saw consumer confidence as key to a bright future:

From our recent channel checks, factors cited by dealers as driving such renewed optimism include rising consumer confidence, increased availability of consumer financing alternatives, relatively stable fuel prices, and most recently, a thawing residential real estate market and its resulting wealth effect in the mindset of prospective consumers.�

Thor Industries

The company also pushed back against negative sentiment caused by latest earnings, which saw its 58 cents a share profit and $875.6 million revenue missing consensus estimates of 62 cents profit and $876.8 million revenue.

In a statement accompanying the earnings, Thor President and Chief Operating Officer Bob Martin cited factors that include an �ongoing competitive environment� and one-time expenses totaling $1.6 million for the poor quarter.

�The RV and bus markets remain very competitive, with heightened discounting and aggressive bidding affecting sales and margins,� said Martin. �Bus margins were also affected by a shift in product mix toward lower-margin units.�