Cavco Q3 revenue up 11.3%, but misses estimates

Overview

• Factory-built housing maker's fiscal Q3 revenue rose 11.3% yr/yr but missed analysts' expectations

• Net income per diluted share fell 19.1% yr/yr

• Company completed acquisition of American Homestar, contributing $42 mln to net revenue

Outlook

• Cavco anticipates positive impact from American Homestar acquisition exceeding previous expectations

• Company is optimistic about affordable housing discussions influencing market tone

• Cavco looks to spring selling season to assess production increase potential

Result Drivers

• HOME SALES VOLUME - Revenue growth driven by increased home sales volume and higher average selling price per home

• AMERICAN HOMESTAR - Acquisition contributed $42 mln to net revenue, with deal costs impacting earnings

• FINANCIAL SERVICES - Segment showed strong results with higher insurance premiums and lower claims losses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 $600.00, about 2.6% below its January 28 closing price of $616.11

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nGNX5YwnH9

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