NASDAQ$CVCO

Cavco Industries Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Cavco's financial performance increased in Q3 2020, driven by revenue growth and improved profitability.

Cavco Industries reported a strong third quarter for fiscal year 2020, with a 17.1% increase in net revenue to $273.7 million and a 56.0% increase in net income to $20.9 million. The company benefited from improved home sales volume, the acquisition of Destiny Homes, and strong consumer demand.

  • Net revenue increased by 17.1% to $273.7 million, driven by improved home sales volume and the Destiny Homes acquisition.
  • Income from operations rose by 26.4% to $23.0 million, due to sales increases in factory-built housing and decreased weather-related claims in financial services.
  • Net income increased significantly by 56.0% to $20.9 million, further benefited by unrealized gains on corporate equity investments and lower effective income tax rates.
  • Factory-built housing shipments increased, reducing sales order backlogs to approximately 6 weeks of production, or $115 million.

Headline financials

Total Revenue

$274M

Previous: $234M+17.1%
EPS (adj)

$2.25

Previous: $1.44+56.3%
Factory-built homes sold

3.9K

Previous: 3.4K+12.1%
Backlog

$115M

No prior period
Capital Expenditures

-$6.49M

Previous: -$6.32M-2.7%
Free Cash Flow

$14.4M

Previous: $7.07M+103.9%
Net Income

$20.9M

Previous: $13.4M+56.1%
Operating Income

$23M

Previous: $18.2M+26.5%
Gross Profit

$59.9M

Previous: $49M+22.1%
Cash & Equivalents

$217M

Previous: $193M+12.5%
Total Assets

$787M

Previous: $717M+9.8%
Stock-Based Comp

$820K

Previous: $821K-0.1%

Revenue & EPS history

Cavco · Revenue · Quarterly

$274M

Q3 2020+17.1%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Cavco · $274M total across 2 segments · Q3 2020

  • Factory-built housing
    $257M
  • Financial services
    $16.6M

Forward guidance

Cavco expects strong margins and growth in factory-built home shipments to continue, supported by strong consumer demand.

Tailwinds

  • Strong margins in factory-built home shipments are expected to continue.
  • Growth in factory-built home shipments is expected to continue.
  • Consumer demand is strong.
  • High employment levels support consumer demand.
  • Growing household incomes support consumer demand.

Headwinds

  • The company faces risks related to integrating acquisitions.
  • Involvement in vertically integrated lines of business poses risks.
  • Information technology failures or cyber incidents could negatively impact operations.
  • Curtailment of available financing from home-only lenders could affect sales.
  • The company faces risks from participation in wholesale and retail financing programs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+1.1%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+5.3%

Avg return

30 days after

59%

38 / 64 earnings

Positive

+18.0%

Q3 2018

Best reaction

-23.5%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+3.4%+11.1%+22.3%
Q3 2026-20.3%-18.1%-6.5%
Q2 2026+6.4%+11.1%+18.2%
Q1 2026+4.9%+11.7%+31.4%
Q4 2025-5.4%-12.9%-20.4%
Q3 2025+6.7%+12.0%+10.0%
Q2 2025+7.9%+10.6%+24.3%
Q1 2025-7.6%-12.3%-0.3%
Q4 2024-1.7%-1.3%+1.1%
Q3 2024+3.4%+6.3%+14.2%
Q2 2024+9.0%+5.5%+17.4%
Q1 2024+1.3%+3.9%-0.6%
Q4 2023-6.1%-4.3%-6.6%
Q3 2023-0.5%+5.6%+6.6%
Q2 2023-1.1%+3.8%+17.8%
Q1 2023+9.2%+9.9%-11.1%
Q4 2022+4.4%+5.9%-5.3%
Q3 2022+6.0%+7.2%-1.4%
Q2 2022+3.2%+13.8%+19.3%
Q1 2022+4.0%+5.6%+5.8%
Q4 2021+4.0%+5.0%+4.3%
Q3 2021+3.6%+12.1%+15.9%
Q2 2021-1.5%+10.5%+7.3%
Q1 2021+4.0%+7.2%+0.7%
Q4 2020+9.8%+1.9%-1.6%
Q3 2020+2.8%+3.1%-7.5%
Q2 2020-4.8%-3.9%-2.1%
Q1 2020+8.0%+8.1%+11.2%
Q4 2019+17.5%+13.5%+19.1%
Q3 2019-17.1%-13.9%-22.0%
Q2 2019-23.5%-22.2%-30.4%
Q1 2019+5.0%+6.8%+16.0%
Q4 2018+10.2%+19.4%+12.5%
Q3 2018+18.0%+10.9%+20.1%
Q2 2018-3.8%-5.0%-5.1%
Q1 2018+2.5%-7.1%-1.5%
Q4 2017+11.2%+11.5%+11.8%
Q3 2017+10.6%+14.3%+20.0%
Q2 2017+3.6%+4.7%+12.2%
Q1 2017-0.8%+2.6%+6.4%
Q4 2016+5.6%+4.7%-6.2%
Q3 2016+5.9%
Q2 2016+17.9%
Q1 2016-0.5%
Q4 2015+1.7%
Q3 2015-0.1%
Q2 2015+0.1%
Q1 2015-2.6%
Q4 2014+6.6%
Q3 2014+5.3%
Q2 2014-5.5%
Q1 2014+5.3%
Q4 2013+3.3%
Q3 2013+0.5%
Q2 2013-4.0%
Q1 2013-3.4%
Q4 2010+0.9%
Q3 2012-1.4%
Q3 2011-1.4%
Q2 2012-3.5%
Q4 2011-12.1%
Q2 2011-12.1%
Q1 2012-12.1%
Q1 2011-12.1%

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