- Factory-built housing company Skyline Champion Corporation SKY reported the fourth quarter FY23 sales of $491.53 million, missing the consensus estimate of $528.22 million. Net sales decreased 23% year over year.
- Earnings per share decreased 33.8% to $1.00, beating the analyst consensus of $0.93.
- The number of U.S. homes sold in 4Q decreased 25.5% to 4,900 Y/Y.
- Volume levels during the quarter were adversely impacted by retailer inventory destocking which drove lower order rates and reduced production.
- Gross profit decreased by 26.1% Y/Y to $141.15 million in 4Q. Gross profit margin contracted by 120 basis points to 28.7%, dragged by lower volumes and demand in certain markets.
- Net income decreased by 33.5% to $57.75 million owing to lower sales.
- The total backlog for Skyline Champion was $308 million as of April 1, 2023, compared to $532 million at the end of 3Q.
- "While backlogs continue to normalize, the current housing environment creates an opportunity for Skyline Champion to continue to outperform," said Mark Yost, Skyline Champion's President and Chief Executive Officer.
- The company exited the 4Q with cash and equivalents worth $747.45 million.
- For FY23, net sales were $2.6 billion, which represents an increase of 18.1% Y/Y. Net sales growth was primarily driven by higher average selling prices per home and $200 million of disaster relief housing revenue recorded in the first half of the fiscal year.
- Price Action: SKY shares are trading lower by 10.38% to $57.82 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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