Cavco Industries Q2 revenue beats estimates on higher home sales, prices
CVCO•Cavco Industries’ fiscal second-quarter revenue rose 17.9% to $656.38 million, topping the $613.30 million analyst estimate, as home sales volume and average selling prices increased. Diluted earnings per share rose 9% year over year to $7.17, including a $0.70 benefit from a one-time $7 million insurance premium return.
1. Revenue and earnings
Cavco Industries reported fiscal second-quarter revenue of $656.38 million, up 17.9% year over year and above the $613.30 million consensus estimate. The company attributed revenue growth to higher home sales volume and increased average selling prices. Diluted earnings per share increased 9% year over year to $7.17; a one-time $7 million insurance premium return added $0.70 per share.
2. Outlook and repurchases
The company expects healthy backlogs to support operations during seasonally slower winter months, while materials inflation is expected to remain a challenge in coming quarters. It said data center workforce housing orders are contributing to future backlog and repurchased about $30 million in stock during the quarter.
