Modular home and building manufacturer Champion Homes (NYSE: SKY) will be announcing earnings results this Tuesday after market hours. Here’s what to expect.
Champion Homes beat analysts’ revenue expectations by 9.2% last quarter, reporting revenues of $701.3 million, up 11.7% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Champion Homes a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Champion Homes’s revenue to grow 3.8% year on year to $640.2 million, slowing from the 32.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Champion Homes has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Champion Homes’s peers in the home builders segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Taylor Morrison Home’s revenues decreased 1.2% year on year, beating analysts’ expectations by 3.4%, and Tri Pointe Homes reported a revenue decline of 25.3%, topping estimates by 15%. Taylor Morrison Home traded down 2.4% following the results while Tri Pointe Homes’s stock price was unchanged.
Read our full analysis of Taylor Morrison Home’s results here and Tri Pointe Homes’s results here.
Investors in the home builders segment have had steady hands going into earnings, with share prices flat over the last month. Champion Homes is down 1.8% during the same time and is heading into earnings with an average analyst price target of $82.83 (compared to the current share price of $68.23).
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