Champion Homes (NYSE:SKY) Posts Quarterly Earnings Results, Beats Estimates By $0.31 EPS

Key Points

• Champion Homes (NYSE:SKY) reported quarterly earnings per share of $1.19, significantly exceeding the consensus estimate of $0.88 and marking a year-over-year increase from $0.91.
• The company announced a $50 million share repurchase program, indicating management's belief that the stock is undervalued.
• Despite positive earnings, several analysts have lowered their price targets for the stock, with an average consensus target of $80.60 and a rating of "Hold".

Champion Homes (NYSE:SKY - Get Free Report) announced its earnings results on Tuesday. The company reported $1.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.88 by $0.31, Zacks reports. Champion Homes had a return on equity of 14.47% and a net margin of 8.50%. The business had revenue of $701.32 million for the quarter, compared to analyst estimates of $642.18 million. During the same period in the previous year, the company earned $0.91 earnings per share. The company's revenue for the quarter was up 11.7% compared to the same quarter last year.

Champion Homes Stock Performance

SKY stock traded down $1.71 during midday trading on Thursday, reaching $67.45. The company had a trading volume of 710,032 shares, compared to its average volume of 641,143. The company has a quick ratio of 1.61, a current ratio of 2.41 and a debt-to-equity ratio of 0.02. The stock has a 50 day moving average price of $64.54 and a 200 day moving average price of $82.50. Champion Homes has a fifty-two week low of $59.44 and a fifty-two week high of $116.49. The firm has a market capitalization of $3.86 billion, a PE ratio of 17.94 and a beta of 1.13.

Hedge Funds Weigh In On Champion Homes

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Millennium Management LLC boosted its position in shares of Champion Homes by 712.0% during the first quarter. Millennium Management LLC now owns 70,029 shares of the company's stock worth $6,636,000 after buying an additional 61,405 shares during the period. Royal Bank of Canada boosted its position in shares of Champion Homes by 66.1% during the first quarter. Royal Bank of Canada now owns 10,804 shares of the company's stock worth $1,024,000 after buying an additional 4,301 shares during the period. Finally, AQR Capital Management LLC acquired a new position in shares of Champion Homes during the first quarter worth approximately $294,000.

Champion Homes declared that its Board of Directors has approved a share buyback plan on Friday, May 30th that authorizes the company to repurchase $50.00 million in shares. This repurchase authorization authorizes the company to purchase up to 1.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

SKY has been the subject of a number of research reports. Barclays lifted their price target on Champion Homes from $72.00 to $74.00 and gave the stock an "equal weight" rating in a research note on Thursday. Zelman & Associates upgraded Champion Homes from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 5th. Finally, Royal Bank Of Canada lifted their price target on Champion Homes from $82.00 to $85.00 and gave the stock a "sector perform" rating in a research note on Thursday. Six research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, Champion Homes presently has an average rating of "Hold" and an average price target of $81.60.

Champion Homes Company Profile

Skyline Champion Corporation produces and sells factory-built housing in North America. The company offers manufactured and modular homes, park models RVs, accessory dwelling units, and modular buildings for the multi-family and hospitality sectors. It builds homes under the Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes brands in the United States; and Moduline and SRI Homes brand names in western Canada.