Overview

• U.S. factory-built housing maker's Q4 revenue rose 8% yr/yr but missed analyst expectations

• Q4 diluted EPS rose 21% yr/yr to $5.42

• Company approved additional $150 mln stock repurchase program

Outlook

• Company says market conditions remain uncertain and have not materially improved

• Company continues to invest in expansion and digital transformation

Result Drivers

• HIGHER SELLING PRICES - Factory-built housing segment revenue rose due to higher average selling price per home, mainly from increased sales through company-owned stores and product mix

• FINANCIAL SERVICES GROWTH - Financial services segment revenue increased due to more loan sales after securing a long-term agreement with a third-party investor and improved insurance performance

• AMERICAN HOMESTAR ACQUISITION - Acquisition of American Homestar contributed to revenue and exceeded expectations for synergies and operating performance, per CEO Bill Boor

Company press release: ID:nGNX4sNhVL

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold."

• Wall Street's median 12-month price target for Cavco Industries Inc is $587.50, about 18.7% above its May 20 closing price of $495.11

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

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