Thor Industries (NYSE: THO), a leading manufacturer of recreational vehicles, reported third-quarter net income of 59 cents per share, compared to $2.53 per share during the year-over period. The Q3 earnings include EHG acquisition-related costs of around $1.06 per share.

Excluding these costs, the company narrowly surpassed analysts’ expectation for the quarter.

thor industries Q3 2019 earnings results

Revenues gained 11% year-over-year to $2.51 billion, helped by a more stable sales environment in North America. However, this fell short of the street consensus of $2.63 billion, sending the stock down over 1% during pre-market trading.

Lower unit volume hurt sales in both the North American Towable RV as well as the North American Motorized RV segment. North American Towable RV sales fell to $1.24 billion from $1.61 billion in the prior-year period, while North American Motorized RV sales were $459.2 million, down from $598.5 million a year ago.

CEO Bob Martin said, “EHG made a significant contribution to our top-line results for the quarter, and as we move through some of the transitional costs, we look forward to EHG’s meaningful contribution to our bottom line as well.”

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After falling to a multi-year low in December last year, shares of the Elkhart, Indiana-based firm showed signs of a recovery in early 2019. However, it pared the early gains as the year progressed. The stock lost about 47% in the past twelve months.

In what could be the warnings of a slowdown, the company in its recent statements hinted at cutting production to rein in the inventory imbalance. However, it is estimated that the dip in dealer demand will be short-lived. Thor’s solid production capacity, which got a boost after the acquisition of Jayco a few years ago, contributes to the inventory backlog.

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