What To Expect From Champion Homes's (SKY) Q4 Earnings

Modular home and building manufacturer Champion Homes (NYSE:SKY) will be reporting results this Tuesday after the bell. Here’s what you need to know.

Champion Homes beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $684.4 million, up 11% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Is Champion Homes a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Champion Homes’s revenue to grow 1.7% year on year to $655.9 million, slowing from the 15.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 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. Champion Homes has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Champion Homes’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’s revenues decreased 4.7% year on year, beating analysts’ expectations by 9.4%, and PulteGroup reported a revenue decline of 6.3%, topping estimates by 6%. NVR traded up 1.6% following the results while PulteGroup was also up 1.5%.

Read our full analysis of NVR’s results here and PulteGroup’s results here.

There has been positive sentiment among investors in the home builders segment, with share prices up 5.1% on average over the last month. Champion Homes is down 6.4% during the same time and is heading into earnings with an average analyst price target of $95.80 (compared to the current share price of $78.39).

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