Cavco Industries (NASDAQ:CVCO) Releases Quarterly Earnings Results, Misses Estimates By $0.42 EPS

by · The Markets Daily

Cavco Industries (NASDAQ:CVCO – Get Free Report) released its earnings results on Thursday. The construction company reported $5.58 EPS for the quarter, missing analysts’ consensus estimates of $6.00 by ($0.42), Zacks reports. Cavco Industries had a return on equity of 17.91% and a net margin of 8.37%.The firm had revenue of $580.99 million for the quarter, compared to analyst estimates of $593.37 million.

Cavco Industries Trading Down 20.3%

Cavco Industries stock opened at $492.02 on Friday. The company has a 50-day moving average price of $616.41 and a 200 day moving average price of $551.55. The stock has a market cap of $3.84 billion, a P/E ratio of 21.37 and a beta of 1.31. Cavco Industries has a 12-month low of $393.53 and a 12-month high of $713.01.

Key Headlines Impacting Cavco Industries

Here are the key news stories impacting Cavco Industries this week:

  • Positive Sentiment: Revenue growth and acquisition contribution — Net revenue rose 11.3% year-over‑year to $581.0M, driven by higher home sales and a $42M revenue contribution from the recent American Homestar acquisition. GlobeNewswire: Q3 Release
  • Positive Sentiment: Financial services improvement and share buybacks — The financial‑services segment showed stronger gross margins (65.2% vs. 55.5% prior year) and management repurchased ≈$44M of stock in the quarter with ~$98M remaining authorization. Quiver: Q3 Summary
  • Neutral Sentiment: Backlog and capacity — Backlog ended the quarter at ~$160M (4–6 weeks of production); capacity utilization fell to ~70% (from ~75% a year ago), leaving room to scale production into the spring if demand improves. GlobeNewswire: Q3 Release
  • Neutral Sentiment: Conference call / outlook — Management reiterated optimism for the Spring selling season but warned industry shipments slowed in Oct–Nov; a conference call/webcast is scheduled for investor Q&A. GlobeNewswire: Q3 Release
  • Negative Sentiment: Earnings and revenue missed consensus — Diluted EPS was $5.58 (down ~19% YoY) and revenue came in below street estimates, which prompted immediate negative price reaction from investors. Investing.com: Earnings Miss
  • Negative Sentiment: Margin compression and lower operating profit — Consolidated gross margin narrowed (23.4% vs. 24.9% year‑ago) and income from operations declined ~14.7% as factory-built housing margins fell and SG&A increased (deal costs + integration spend). Quiver: Financial Details
  • Negative Sentiment: Integration costs, higher SG&A and cash decline — The American Homestar acquisition added ~$6.9M of incremental SG&A plus ~$2.9M of deal costs; cash and cash equivalents fell to ~$224.6M, which may concern some investors given recent buybacks and increased capex. Quiver: Q3 Summary
  • Negative Sentiment: Insider selling noted — Recent filings show multiple insider sales in the last six months, which can weigh on sentiment even if not determinative of fundamentals. Quiver: Insider Activity

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cavco Industries in a research report on Monday, December 29th. CJS Securities raised shares of Cavco Industries to a “strong-buy” rating in a report on Thursday, December 11th. Finally, Zacks Research cut Cavco Industries from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 16th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $550.00.

Get Our Latest Report on CVCO

Insiders Place Their Bets

In other Cavco Industries news, Director Richard A. Kerley sold 500 shares of the firm’s stock in a transaction dated Friday, November 7th. The stock was sold at an average price of $568.99, for a total value of $284,495.00. Following the sale, the director directly owned 6,669 shares of the company’s stock, valued at approximately $3,794,594.31. This trade represents a 6.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Cavco Industries

A number of institutional investors have recently bought and sold shares of CVCO. Brevan Howard Capital Management LP grew its holdings in Cavco Industries by 15.5% during the 3rd quarter. Brevan Howard Capital Management LP now owns 746 shares of the construction company’s stock valued at $433,000 after purchasing an additional 100 shares in the last quarter. Amundi boosted its position in Cavco Industries by 6.7% in the 3rd quarter. Amundi now owns 1,414 shares of the construction company’s stock valued at $821,000 after buying an additional 89 shares during the last quarter. Blair William & Co. IL acquired a new stake in shares of Cavco Industries during the third quarter valued at about $317,000. Headlands Technologies LLC purchased a new stake in shares of Cavco Industries during the second quarter worth about $609,000. Finally, Tower Research Capital LLC TRC lifted its stake in shares of Cavco Industries by 3,100.0% in the second quarter. Tower Research Capital LLC TRC now owns 736 shares of the construction company’s stock worth $320,000 after acquiring an additional 713 shares in the last quarter. 95.56% of the stock is currently owned by hedge funds and other institutional investors.

Cavco Industries Company Profile

(Get Free Report)

Cavco Industries, Inc is a leading designer, manufacturer and retailer of factory-built homes and modular structures. The company produces a range of HUD-code manufactured homes, modular buildings, park model RVs and cabins through its network of production facilities. Its offerings cater to both residential and commercial markets, including customizable single- and multi-section homes, workforce and affordable housing solutions, educational and healthcare modules, as well as specialty lodging products for the recreational vehicle and hospitality industries.

Since its founding in 1967, Cavco has grown through strategic investments and acquisitions, expanding its footprint across the United States and into parts of Canada and Mexico.

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