Skyline Champion (SKY) Earnings Preview: What to Expect on Monday
Get ready for a pivotal week for Skyline Champion (SKY) investors, as the company prepares to unveil its quarterly earnings report on Monday, October 28th, 2024. Analysts are anticipating an earnings per share (EPS) of $0.81, setting the stage for a potentially exciting announcement. Investors will be closely watching for not just whether the company surpasses these estimates but also for any optimistic guidance about the next quarter. While earnings performance is crucial, it’s important to remember that market reactions are often driven by the guidance provided by companies.
A Look Back at Skyline Champion’s Recent Performance
In the previous quarter, Skyline Champion delivered an EPS that exceeded expectations by $0.17. This positive surprise resulted in an 11.11% surge in the company’s share price the day after the announcement. Here’s a closer look at Skyline Champion’s recent performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q1 2025 | 0.74 | 0.91 | 11.0% |
| Q4 2024 | 0.68 | 0.62 | -7.00% |
| Q3 2024 | 0.64 | 0.82 | 12.0% |
| Q2 2024 | 0.79 | 0.82 | -5.0% |
Tracking Skyline Champion’s Stock Performance
As of October 24th, Skyline Champion’s shares were trading at $89.03. Over the past 52 weeks, the stock has experienced a significant rise of 50.44%. This positive trajectory likely suggests a bullish sentiment among long-term shareholders heading into this earnings release.
Analyst Opinions on Skyline Champion
For investors, understanding market sentiment and expectations within the industry is paramount. Here’s an analysis of the latest insights on Skyline Champion:
*
Consensus Rating:
The consensus rating for Skyline Champion is currently Neutral, based on the opinions of 4 analysts. This suggests a mixed outlook on the company’s future prospects.*
Average One-Year Price Target:
The average one-year price target for Skyline Champion is $79.25, implying a potential downside of 10.99%. This indicates that analysts are cautiously optimistic about the company’s potential in the coming year.Comparing Skyline Champion to its Peers
To gain a better understanding of Skyline Champion’s position within the industry, it’s helpful to compare it to key competitors. Let’s examine the analyst ratings and average one-year price targets of KB Home, M/I Homes, and Tri Pointe Homes, three significant players in the manufactured housing market:
*
KB Home:
Analysts predict a Neutral trajectory for KB Home, with an average one-year price target of $79.0, suggesting a potential downside of 11.27%.*
M/I Homes:
Analysts favor a Buy trajectory for M/I Homes, with an average one-year price target of $210.0, indicating a potential upside of 135.88%.*
Tri Pointe Homes:
Analysts currently favor a Neutral trajectory for Tri Pointe Homes, with an average one-year price target of $47.6, suggesting a potential downside of 46.53%.Peer Metrics Summary
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Skyline Champion | Neutral | 35.07% | $164.22M | 3.19% |
| KB Home | Neutral | 10.43% | $365.44M | 3.91% |
| M/I Homes | Buy | 9.44% | $309.28M | 5.46% |
| Tri Pointe Homes | Neutral | 37.93% | $274.51M | 3.81% |
Key Takeaway:
Skyline Champion’s revenue growth ranks in the middle among its peers, with one peer showing the highest growth. In terms of gross profit, Skyline Champion falls behind its peers. For return on equity, Skyline Champion also ranks last, with one peer achieving the highest return. Overall, Skyline Champion’s performance is mixed compared to its competitors within the industry.About Skyline Champion
Champion Homes Inc., trading under the ticker symbol SKY, is a leading factory-built housing company in North America. The company offers a comprehensive portfolio of manufactured and modular homes, ADUs (accessory dwelling units), park models, and modular buildings for the single-family, multi-family, and hospitality sectors. Beyond its core home building operations, Skyline Champion provides construction services for installing and setting up factory-built homes. It also operates a factory-direct retail business with 72 retail locations across the United States and manages Star Fleet Trucking, which provides transportation services to the manufactured housing industry and other sectors from various dispatch locations nationwide.
Key Indicators: Analyzing Skyline Champion’s Financial Health
*
Market Capitalization:
Skyline Champion’s market capitalization falls below industry benchmarks, reflecting a smaller size compared to its peers. This positioning might be influenced by factors such as growth expectations or operational capacity.*
Revenue Growth:
Over the past three months, Skyline Champion has achieved notable revenue growth. As of June 30th, 2024, the company’s revenue growth rate reached approximately 35.07%. This indicates a substantial increase in the company’s top-line earnings. When compared to other companies in the Consumer Discretionary sector, Skyline Champion stands out with a growth rate exceeding the average among its peers.*
Net Margin:
Skyline Champion’s net margin falls below industry averages, signaling potential challenges in maintaining strong profitability. With a net margin of 7.29%, the company may face hurdles in effectively managing costs.*
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 might 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 might face hurdles in achieving optimal financial returns.*
Debt Management:
Skyline Champion maintains a debt-to-equity ratio of 0.08, which is below the average, indicating a prudent financial strategy and a balanced approach to debt management.To stay updated on all earnings releases for Skyline Champion, visit their earnings calendar on our site.
