Cavco Industries Q3 earnings beat expectations, shares rise

Published 30/01/2025, 22:44
Cavco Industries Q3 earnings beat expectations, shares rise

PHOENIX - Cavco Industries , Inc. (NASDAQ:CVCO) reported strong third quarter results that exceeded analyst estimates, sending shares up 1.72% in after-hours trading.

The manufactured home builder posted earnings per share of $6.90 for the quarter ended December 28, 2024, significantly beating the analyst consensus of $4.89. Revenue came in at $522 million, also topping expectations of $480.15 million.

Net revenue increased 16.8% year-over-year, driven primarily by a 21.6% rise in home sales volume. The company’s factory-built housing segment saw gross profit margin expand to 23.6% from 22.4% in the prior year period.

"Our pre-tax profit improved significantly on increased home shipments and a strong recovery in Financial services," said President and CEO Bill Boor. "The outstanding EPS performance was further boosted by positive tax items and our continuing use of buybacks to manage the balance sheet."

Cavco’s financial services segment had a particularly strong quarter, with gross profit margin jumping to 55.5% compared to 36.8% last year. The company attributed this to pricing and underwriting improvements implemented earlier in the year.

Looking ahead, Boor noted that Cavco is "very well set-up going into the new calendar year" across all segments of its business. The company ended the quarter with a backlog of $224 million, representing 6-8 weeks of production.

Cavco repurchased approximately $42 million worth of stock during the quarter as part of its ongoing capital return program.

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