Cavco Industries' stock fell sharply, hitting a 20-day low, following the announcement of its Q3 earnings report.
The company reported a GAAP EPS of $5.58, missing expectations by $0.68, which raises concerns about profitability and investor confidence. Additionally, revenue of $581 million, although up 11.3% year-over-year, fell short of market expectations by $12.37 million, reflecting challenges from market competition and demand fluctuations. Despite these setbacks, Cavco's acquisition of American Homestar and stock buyback initiatives suggest a focus on long-term growth strategies.
The implications of this earnings miss may lead to a reassessment of Cavco's market position, as investors weigh the impact of current financial challenges against the company's strategic initiatives aimed at future growth.
Wall Street analysts forecast CVCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVCO is 550.00 USD with a low forecast of 550.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast CVCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVCO is 550.00 USD with a low forecast of 550.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 617.500
Low
550.00
Averages
550.00
High
550.00
Current: 617.500
Low
550.00
Averages
550.00
High
550.00
No data
About CVCO
Cavco Industries, Inc. designs and produces factory-built homes primarily distributed through a network of independent and Company-owned retailers, planned community operators and residential developers. Its segments include Factory-built housing and Financial services. The Factory-built housing segment includes wholesale and retail factory-built housing operations. The Financial services segment includes manufactured housing, consumer finance and insurance. The Company also produces park model recreational vehicles (RVs), vacation cabins and factory-built commercial structures. It operates homebuilding production lines in Millersburg and Woodburn, Oregon; Riverside, California; Nampa, Idaho; Glendale, Goodyear and Phoenix, Arizona; Deming, New Mexico; Duncan, Oklahoma; Austin, Fort Worth, Seguin and Waco, Texas; Ojinaga, Mexico (two lines); Montevideo, Minnesota; Dorchester, Wisconsin; Nappanee and Goshen, Indiana; Lafayette, Tennessee, and Douglas and Moultrie.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
