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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$656.38 mln

$613.30 mln (4 Analysts)

Q2 EPS

$7.17


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


Reuters Recommended Reads

  • Oct 29 - Dream Finders Homes Q3 revenue rises on higher closings

  • Oct 29 - D.R. Horton Q4 revenue beats estimates despite weak housing demand

  • Oct 29 - AI data center boom faces backlash at US ballot box


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.)

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