Benzinga | Mar 8, 2021 10:10AM EST

Preview: Thor Industries's Earnings

Thor Industries (NYSE:THO) announces its next round of earnings this Tuesday, March 09. Here is Benzinga's everything-that-matters guide for this Tuesday's Q2 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Thor Industries analysts model for earnings of $1.55 per share on sales of $2.53 billion. Thor Industries reported a profit of $0.67 per share when it published results during the same quarter last year. Sales in that period totaled $2.00 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 131.34% increase in the company's earnings. Sales would be up 26.31% on a year-over-year basis. Thor Industries's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.56 1.34 -0.26 0.69EPS Actual 2.05 2.14 0.43 0.67Revenue Estimate 2.37 B 2.29 B 1.68 B 1.82 BRevenue Actual 2.54 B 2.32 B 1.68 B 2.00 B

Stock Performance

Over the last 52-week period, shares are up 125.75%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Thor Industries is scheduled to hold the call at 08:00:00 ET and can be accessed here.