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Champion Homes Q2 sales slightly beat estimates

By Reuters News


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.)

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