Champion Homes Q2 sales slightly beat estimates
Overview
US factory-built housing maker's fiscal Q2 sales rose, slightly beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company repurchased $50 mln of stock, refreshed buyback authorization to $150 mln in October
Outlook
Champion Homes did not provide specific financial guidance for the current or future periods in the press release
Result Drivers
HIGHER PRODUCTION AND RETAIL SALES - Co said increase in U.S. homes sold was driven by higher production rates and more sales from captive retail stores
PRICE REALIZATION AND PRODUCT MIX - Co attributed higher average selling price per U.S. home to improved price realization and channel/product mix
INFLATIONARY COSTS - Co said decrease in net income was primarily due to inflationary increases in cost of sales
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Beat* | $727 mln | $721.04 mln (7 Analysts) |
Q2 EPS | Beat | $0.97 | $0.94 (6 Analysts) |
Q2 Net Income | Beat | $52.70 mln | $51.25 mln (5 Analysts) |
Q2 Gross Margin | 25.50% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "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 Champion Homes Inc is $103.44, about 16.6% above its November 2 closing price of $88.70
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 22 three months ago
Reuters Recommended Reads
Nov 3 - LGI Homes Q3 adjusted EPS beats on higher closings, cost controls
Nov 3 - NexPoint Residential Q3 revenue slightly beats estimates, net loss widens
Nov 1 - Australian home prices fall for seventh month, looming rate hike adds to pain
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)