LCI Industries (LCII) Stock Forecast & Price Target

LCI Industries anticipates a revenue increase of approximately 5% year-over-year for the third quarter, driven by a 4% to 5% rise in RV OEM sales, supported by a significant pricing benefit, while maintaining an operating margin akin to the previous year's 5.9%. The company also reported a notable 22% growth in adjacent OEM sales, bolstered by recent acquisitions and organic growth in key markets, highlighting its expansion capabilities. Furthermore, the aftermarket segment has shown a 7% increase, attributed to product innovations and strengthened partnerships, which collectively reinforce a positive financial trajectory for LCI Industries.

LCI Industries is experiencing declining production in single axle trailer manufacturing, with output decreasing from the mid-20% range to 19%, indicating a potential loss in market share. The company's July net sales increased by 5% year-over-year, reaching approximately $327 million; however, this growth was largely driven by mergers and acquisitions as well as pricing adjustments, which were offset by a decline in RV production. Concerns about economic deterioration, coupled with ongoing tariff uncertainty and the company's ability to manage cost increases while preserving market share, have led to a negative outlook on earnings per share and overall performance.