Uncovering Potential: Skyline Champion's Earnings Preview

Skyline Champion SKY will release its quarterly earnings report on Monday, 2024-10-28. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Skyline Champion to report an earnings per share (EPS) of $0.81.

Anticipation surrounds Skyline Champion's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

The company's EPS beat by $0.17 in the last quarter, leading to a 11.11% increase in the share price on the following day.

Here's a look at Skyline Champion's past performance and the resulting price change:

Tracking Skyline Champion's Stock Performance

Shares of Skyline Champion were trading at $89.03 as of October 24. Over the last 52-week period, shares are up 50.44%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Skyline Champion

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Skyline Champion.

The consensus rating for Skyline Champion is Neutral, derived from 4 analyst ratings. An average one-year price target of $79.25 implies a potential 10.99% downside.

Analyzing Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of KB Home, M/I Homes and Tri Pointe Homes, three key industry players, offering insights into their relative performance expectations and market positioning.

• For KB Home, analysts project an Neutral trajectory, with an average 1-year price target of $79.0, indicating a potential 11.27% downside.
• As per analysts' assessments, M/I Homes is favoring an Buy trajectory, with an average 1-year price target of $210.0, suggesting a potential 135.88% upside.
• Analysts currently favor an Neutral trajectory for Tri Pointe Homes, with an average 1-year price target of $47.6, suggesting a potential 46.53% downside.

Peer Metrics Summary

In the peer analysis summary, key metrics for KB Home, M/I Homes and Tri Pointe Homes are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Skyline Champion ranks in the middle among peers for revenue growth, with one peer showing the highest growth. In terms of gross profit, Skyline Champion is at the bottom compared to its peers. For return on equity, Skyline Champion is also at the bottom, with one peer having the highest return. Overall, Skyline Champion's performance is mixed compared to its peers in the industry.

About Skyline Champion

Champion Homes Inc is a factory-built housing company in North America. The company is well positioned with an portfolio of manufactured and modular homes, ADUs, park-models and modular buildings for the single-family, multi-family, and hospitality sectors. In addition to its core home building business, Champion Homes provides construction services to install and set-up factory-built homes, operates a factory-direct retail business with 72 retail locations across the United States, and operates Star Fleet Trucking, providing transportation services to the manufactured housing and other industries from several dispatch locations across the United States.

Key Indicators: Skyline Champion's Financial Health

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Skyline Champion's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 35.07%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Skyline Champion's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 7.29%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Skyline Champion's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.19%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Skyline Champion's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 2.34%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.08, Skyline Champion adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Skyline Champion visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.