Cavco Industries Q2 revenue beats estimates on higher home sales, prices

Overview

• U.S. factory-built home maker's fiscal Q2 revenue rose 17.9%, beating analyst expectations

• Net income per diluted share increased 9% year-over-year

• Company repurchased about $30 mln in stock during the quarter

Outlook

• Company expects healthy backlogs to support operations during seasonally slower winter months

• Company expects materials inflation to remain a challenge in coming quarters

• Company sees data center workforce housing orders contributing to future backlog

Result Drivers

• HOME SALES VOLUME AND PRICING - Co attributed revenue growth to higher home sales volume and increased average selling price per home

• INSURANCE PREMIUM RETURN - One-time $7 mln insurance premium return boosted net income per diluted share by $0.70

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy"

• Wall Street's median 12-month price target for Cavco Industries, Inc. is $645.00, about 21.1% above its October 28 closing price of $532.57

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)