Stock Story -
Modular home and building manufacturer Skyline Champion (NYSE:SKY) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
Skyline Champion missed analysts' revenue expectations by 4.4% last quarter, reporting revenues of $536.4 million, up 9.1% year on year. It was a weak quarter for the company, with a miss of analysts' earnings and volume estimates.
Is Skyline Champion a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Skyline Champion's revenue to grow 29.2% year on year to $600.3 million, a reversal from the 36% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. NVR delivered year-on-year revenue growth of 11.7%, beating analysts' expectations by 2.6%, and Tri Pointe Homes reported revenues up 37.9%, topping estimates by 8.4%. NVR traded down 2.9% following the results while Tri Pointe Homes was up 1.7%.
Read the full analysis of NVR's and Tri Pointe Homes's results on StockStory.
There has been positive sentiment among investors in the home builders segment, with share prices up 2.8% on average over the last month. Skyline Champion is up 11% during the same time and is heading into earnings with an average analyst price target of $75 (compared to the current share price of $75.61).
