Cavco Industries, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, Cavco Industries, Inc. (NASDAQ:CVCO) just kicked off its latest quarterly results with some very strong numbers. Cavco Industries beat earnings, with revenues hitting US$557m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 16%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Cavco Industries from three analysts is for revenues of US$2.19b in 2026. If met, it would imply a credible 4.5% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.2% to US$24.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.15b and earnings per share (EPS) of US$23.99 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for Cavco Industries

Despite these upgrades,the analysts have not made any major changes to their price target of US$548, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Cavco Industries, with the most bullish analyst valuing it at US$570 and the most bearish at US$525 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Cavco Industries' revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2026 being well below the historical 12% 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) 3.8% per year. Even after the forecast slowdown in growth, it seems obvious that Cavco Industries is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cavco Industries following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Cavco Industries. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Cavco Industries going out to 2027, 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.