Cavco Industries, Inc. Just Recorded A 23% EPS Beat: Here's What Analysts Are Forecasting Next

Cavco Industries, Inc. (NASDAQ:CVCO) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.5% to hit US$289m. Cavco Industries also reported a statutory profit of US$2.12, which was an impressive 23% above what the analysts had forecast. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Cavco Industries

Following the latest results, Cavco Industries' three analysts are now forecasting revenues of US$1.16b in 2022. This would be a solid 9.7% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 23% to US$8.47. Before this earnings report, the analysts had been forecasting revenues of US$1.16b and earnings per share (EPS) of US$8.47 in 2022. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$221. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Cavco Industries analyst has a price target of US$235 per share, while the most pessimistic values it at US$195. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Next year brings more of the same, according to the analysts, with revenue forecast to grow 9.7%, in line with its 9.4% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.9% per year. It's clear that while Cavco Industries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$221, 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. We have estimates - from multiple Cavco Industries analysts - going out to 2022, 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.

If you’re looking to trade Cavco Industries, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.