Skyline Champion Corporation (NYSE:SKY) is scheduled to report Q2 earnings results after markets close for trading on October 27, 2020.
The company is expected to report earnings of $0.23/share on revenue of $320.1 million. The consensus earnings per share (EPS) of $0.23/share is based on a poll of 6 analysts and represents a decline in eps of −31.4% over the same quarter last year, when the company reported earnings of $0.34/share.
The revenue forecast of $320.1 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −9.7%. Last year the company reported $354.5 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $320.14 | $354.46 | −9.7% |
| EPS | $0.23 | $0.34 | −31.4% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.
What are your expectations from Skyline Champion Corporation for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q1, 2021 | $0.01 | $0.22 | 1,733.3% | Beat |
| Q4, 2020 | $0.20 | $0.14 | −31.7% | Missed |
| Q3, 2020 | $0.31 | $0.32 | 4.6% | Beat |
| Q2, 2020 | $0.31 | $0.34 | 10.9% | Beat |
| Q1, 2020 | $0.27 | $0.35 | 28.4% | Beat |
| Q4, 2019 | $0.20 | $0.26 | 28.7% | Beat |
| Q3, 2019 | $0.22 | $0.27 | 25.0% | Beat |
| Q2, 2019 | $0.18 | $0.23 | 30.2% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 27, 2020, the stock price reacted by increasing 10.7%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| July 29, 2020 | $25.62 | $28.37 | 10.7% | Increase |
| May 20, 2020 | $22.33 | $24.35 | 9.0% | Increase |
| January 28, 2020 | $35.92 | $30.84 | −14.1% | Decline |
| October 30, 2019 | $29.06 | $28.23 | −2.9% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.91, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.91 implies a 0.2% chance of earnings manipulation.
Fundamentals And Technical Analysis
Skyline Champion Corporation is currently trading at $27.22/share, up 2.0% for the day. The company is trading at approximately 73.5% of its 52-week high of $37.03/share. The company’s stock price is down −4.1% since the last earnings report and down −1.0% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 48.18 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 29.34 and a forward P/E multiple of 29.73.
Skyline Champion Corporation’s current share price also implies a price-to-book (P/B) multiple of 3.15. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2021.Q1 |
| Period End Date | June 27, 2020 |
| Stock Price (Current) | $27.22 |
| P/E Ratio | 29.3x |
| P/E Ratio (Fwd) | 29.7x |
| PEG Ratio | 0.1 |
| Total Debt / Total Capital | 7.4% |
| Levered Free Cash Flow | $69.994 million |
| EV / EBITDA | 14.8x |
Skyline Champion Corporation is a small-cap stock with a market capitalization of $1.542 billion and a total enterprise value of $1.426 billion. The company operates in the Consumer Discretionary sector and the Household Durables industry.
Skyline Champion Corporation operates as a factory-built housing company in North America. The company offers manufactured and modular homes, as well as park-models and modular buildings for the multi-family, hospitality, and senior and workforce housing sectors. It builds homes under the brand names of Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Excel Homes, Homes of Merit, New Era, Redman Homes, Shore Park, Silvercrest, Titan Homes in the United States, and Moduline and SRI Homes in western Canada. The company also operates a factory-direct retail business, Titan Factory Direct, with 21 retail locations in the southern United States. In addition, it provides transportation services to the manufactured housing and other industries. The company was founded in 2010 and is headquartered in Troy, Michigan.
