Modular home and building manufacturer Champion Homes (NYSE:SKY) will be reporting earnings tomorrow before market open. Here’s what to expect.
Champion Homes beat analysts’ revenue expectations by 9.2% last quarter, reporting revenues of $644.9 million, up 15.3% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ sales volume estimates and an impressive beat of analysts’ EPS estimates.
Is Champion Homes a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Champion Homes’s revenue to grow 12.1% year on year to $601.4 million, improving from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 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 Q1 results, giving us a hint as to what we can expect. Toll Brothers’s revenues decreased 3.5% year on year, beating analysts’ expectations by 9.9%, and Taylor Morrison Home reported revenues up 11.5%, topping estimates by 5.7%. Toll Brothers’s stock price was unchanged after the resultswhile Taylor Morrison Home was down 1.1%.
Read our full analysis of Toll Brothers’s results here and Taylor Morrison Home’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 7.9% on average over the last month. Champion Homes is down 1.5% during the same time and is heading into earnings with an average analyst price target of $96.58 (compared to the current share price of $83).
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