Overview

• U.S. factory-built housing maker's fiscal Q4 sales rose 4.6%, beating analyst expectations

• Adjusted net income for fiscal Q4 rose 0.8% and beat analyst estimates

• Company repurchased $50 mln of stock in Q4, refreshed buyback authorization for $150 mln

Outlook

• The company did not provide specific guidance in the press release

Result Drivers

• HIGHER SELLING PRICES - Q4 sales growth was driven by a 4.6% increase in average selling price per U.S. home, attributed to product mix and channel dynamics

• ACQUISITIONS - Sales from the Iseman Homes acquisition partially offset lower volume in the community/REIT channel

• ONE-TIME CHARGES - Net income declined due to charges related to the change in fair value of acquisition contingent consideration and product liability true-up

Company press release: ID:nBw9t3YKVa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$621.3 mln	$607.32 mln (5 Analysts)
Q4 Adjusted EPS		$0.68
Q4 Adjusted Net Income	Beat	$37.7 mln	$34.32 mln (4 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Champion Homes Inc is $100.50, about 41.5% above its May 22 closing price of $71.00

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago

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