The U.S. financial markets, based on current stock prices, seem to be signaling a rather positive trend lately regarding the U.S. RV industry following the recent round of corporate financial reports, stated RVBUSINESS.com.
In spite of a continuing 2019 contraction in wholesale shipments, which are off approximately 20% from a year ago, industry OEMs and suppliers appear to have effectively adjusted operations to match current demand in a market in which shipments are expected to be about 400,000 units in 2019, according to RVIA’s Market Report.
The financial markets and investors apparently see these positive trends as stock prices for public industry companies have shown significant strength in recent weeks, reports RVBusiness Partner Gregg Fore, pointing to these stock prices, cited by Yahoo Finance, on three different dates (Nov. 1, 2018; Aug. 15, 2019; and Oct. 25, 2019):
- Thor Industries — $73.00 … $42.72 … $65.00
- Winnebago — $29.15 … $32.15 … $50.00
- REV Group — $11.75 … $11.47 … $12.71
- Patrick Industries — $45.21 … $37.25 … $45.88
- Lippert Comp. — $77.72 … $82.82 … $97.50
Some analysis derived from their most recent earnings reports, according to Fore:
- Patrick Industries Inc:. — Third quarter and year-to-date revenues are very balanced vs. 2018.
- Lippert Components Inc. _ Continued acquisition activity and cost/price controls apparently provide a strong base for continued performance improvement.
- Thor Industries Inc. — Operating margin improvement as the market balanced, providing strong cash flow and the ability to pay-down debt.
- Winnebago Industries Inc. — Solid year-over-year earnings and revenues much stronger than industry as a whole along with a strong and balanced backlog.
- REV Group Inc. — Very stable RV results in the most difficult RV sector – motorized RV’s.
Summation: It seems that the results for the remainder of 2019 are already built into the stronger stock prices and the expectation is for a relatively strong spring quarter in 2020.
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