Overview

* Champion Homes ( SKY ) fiscal Q2 net sales rose 11% yr/yr, beating analyst expectations

* EPS for fiscal Q2 beats analyst estimates

* Company repurchased $50 mln of shares, indicating confidence in financial position

Outlook

* Company did not provide specific guidance for future quarters or full year in the statement

Result Drivers

* RETAIL CHANNEL EXPANSION - Increased sales through company-owned retail channel and acquisition of Iseman Homes drove higher U.S. home sales

* PRODUCT MIX AND PRICING - ASP per U.S. home sold rose 6.8% due to changes in product mix and increased prices on new homes

* GROSS MARGIN EXPANSION - Gross margin expanded due to higher sales through company-owned retail centers and prior year inventory accounting impacts

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $684.40 $635.55

mln mln (5

Analysts

)

Q2 $1.01

Adjusted

EPS

Q2 EPS Beat $1.03 $0.81 (5

Analysts

)

Q2 Net Beat $58.20 $47.97

Income mln mln (4

Analysts

)

Q2 Gross 27.50%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "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 ( SKY ) is $85.00, about 21.6% above its November 3 closing price of $66.60

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

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)