LCI Industries (NYSE:LCII)reported fourth-quarter earnings that nearly doubled from a year ago, fueled by a sharp recovery in the recreational vehicle sector and an increase in the high-value components it supplies to manufacturers.
The company, which operates primarily through its Lippert subsidiary, posted fourth-quarter net income of $19 million, or 77 cents per share.
On an adjusted basis, earnings reached 89 cents per share, a 138 percent increase that handily beat the 69-cent average estimate from analysts surveyed by Zacks Investment Research.
Net sales for the quarter climbed 16 percent to $933 million, surpassing the $913 million expected by Wall Street.
The growth was largely driven by organic gains in the RV original equipment manufacturer (OEM) segment.
Notably, the company’s "content per unit"—a key metric measuring the dollar value of LCI components in each vehicle—rose 11 percent to a record $5,670 for towable RVs.
The manufacturer also saw significant margin recovery.
Operating profit margins expanded by 180 basis points to 3.8 percent in the quarter, as the company benefited from previous facility consolidations and a more favorable product mix.