Skyline Champion (NYSE:SKY) Shares Gap Down After Earnings Miss

Skyline Champion Co. (NYSE:SKY - Get Free Report) shares gapped down before the market opened on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $84.26, but opened at $74.95. Skyline Champion shares last traded at $73.33, with a volume of 245,674 shares trading hands.

The company reported $0.65 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.75 by ($0.10). The company had revenue of $593.87 million for the quarter, compared to the consensus estimate of $595.42 million. Skyline Champion had a return on equity of 13.80% and a net margin of 6.80%. Skyline Champion's revenue for the quarter was up .7% compared to the same quarter last year. During the same period last year, the company earned $0.62 EPS.

Skyline Champion announced that its board has authorized a share buyback program on Friday, May 30th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 1.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Royal Bank of Canada lowered their target price on shares of Skyline Champion from $96.00 to $82.00 and set a "sector perform" rating on the stock in a report on Wednesday. Barclays lowered their target price on shares of Skyline Champion from $97.00 to $72.00 and set an "equal weight" rating on the stock in a report on Wednesday. Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $80.60.

Institutional Investors Weigh In On Skyline Champion

Several institutional investors and hedge funds have recently added to or reduced their stakes in SKY. Barclays PLC grew its position in shares of Skyline Champion by 136.9% during the 3rd quarter. Barclays PLC now owns 111,140 shares of the company's stock valued at $10,543,000 after acquiring an additional 64,229 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new position in shares of Skyline Champion during the 4th quarter valued at approximately $210,000. KBC Group NV grew its position in shares of Skyline Champion by 53.9% during the 4th quarter. KBC Group NV now owns 2,288 shares of the company's stock valued at $202,000 after acquiring an additional 801 shares during the period. Jennison Associates LLC bought a new position in shares of Skyline Champion during the 4th quarter valued at approximately $659,000. Finally, Guidance Capital Inc. bought a new position in shares of Skyline Champion during the 4th quarter valued at approximately $459,000.

Skyline Champion Stock Down 0.3%

The stock's 50-day moving average price is $85.41 and its two-hundred day moving average price is $93.14. The stock has a market capitalization of $3.74 billion, a P/E ratio of 23.01 and a beta of 1.37. The company has a current ratio of 2.59, a quick ratio of 1.74 and a debt-to-equity ratio of 0.02.

About Skyline Champion

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.