Yahoo Finance Cavco Industries, Inc. (NASDAQ:CVCO) Just Released Its Yearly Earnings: Here's What Analysts Think
It's shaping up to be a tough period for Cavco Industries, Inc. (NASDAQ:CVCO), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 2.4% short of analyst estimates at US$1.8b, and statutory earnings of US$18.37 per share missed forecasts by 2.5%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Cavco Industries
Taking into account the latest results, the most recent consensus for Cavco Industries from three analysts is for revenues of US$1.91b in 2025. If met, it would imply a satisfactory 6.4% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.3% to US$20.07. Before this earnings report, the analysts had been forecasting revenues of US$1.96b and earnings per share (EPS) of US$22.46 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
Despite the cuts to forecast earnings, there was no real change to the US$407 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Cavco Industries analyst has a price target of US$425 per share, while the most pessimistic values it at US$382. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cavco Industries is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Cavco Industries' revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% annually. Factoring in the forecast slowdown in growth, it looks like Cavco Industries is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cavco Industries. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at US$407, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Cavco Industries going out to 2026, and you can see them free on our platform here..
You can also see our analysis of Cavco Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
