Modular home and building manufacturer Champion Homes (NYSE: SKY) will be reporting earnings this Tuesday afternoon. Here’s what to expect.
Champion Homes beat analysts’ revenue expectations last quarter, reporting revenues of $621.3 million, up 4.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA and EPS 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, the market is expecting Champion Homes’s revenue to be flat year on year, slowing from the 11.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Champion Homes rarely misses Wall Street’s revenue estimates.
Looking at Champion Homes’s peers in the home builders segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PulteGroup’s revenues decreased 9.6% year on year, beating analysts’ expectations by 1.1%, and Meritage Homes reported a revenue decline of 13.8%, falling short of estimates by 0.9%. PulteGroup’s stock price was unchanged after the resultswhile Meritage Homes was down 1.1%.
Read our full analysis of PulteGroup’s results here and Meritage Homes’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the home builders stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Champion Homes is down 4.8% during the same time and is heading into earnings with an average analyst price target of $92.50 (compared to the current share price of $79.61).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
