Modular home and building manufacturer Skyline Champion (NYSE:SKY) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
Skyline Champion beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $616.9 million, up 32.9% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ sales volume and EBITDA estimates.
Is Skyline Champion a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Skyline Champion’s revenue to grow 5.5% year on year to $590.4 million, a reversal from the 3.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Skyline Champion has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Skyline Champion’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. NVR delivered year-on-year revenue growth of 17%, beating analysts’ expectations by 2.3%, and KB Home reported revenues up 19.5%, in line with consensus estimates. NVR traded down 4.8% following the results while KB Home was up 4.9%.
Read our full analysis of NVR’s results here and KB Home’s results here.
Investors in the home builders segment have had steady hands going into earnings, with share prices flat over the last month. Skyline Champion is up 2.4% during the same time and is heading into earnings with an average analyst price target of $94.17 (compared to the current share price of $91.80).
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