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Skyline Champion Corporation, a prominent producer of factory-built housing, reported a downturn in its fourth-quarter financial performance, missing analyst ex

Skyline Champion Corporation (NYSE: SKY) Reports Fourth Quarter Financial Results

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Image credit: Chris Liverani

Skyline Champion Corporation, a prominent producer of factory-built housing, reported a downturn in its fourth-quarter financial performance, missing analyst expectations for both earnings per share (EPS) and revenue. Following the earnings release, the company's stock experienced a modest decline of 1%.

Key Financial Highlights:

  • Adjusted EPS: Skyline Champion posted an adjusted EPS of $0.62, falling short of the consensus estimate of $0.68.
  • Revenue: Revenue for the quarter also lagged behind projections, reaching $536.4 million against an anticipated $560.9 million.
  • Net Sales Increase: The fourth quarter results represent a 9.1% increase in net sales compared to the same period last year, driven by a 15.3% rise in U.S. homes sold, including contributions from the recent Regional Homes acquisition.
  • Gross Profit Margin: Despite increased sales volume, the company's gross profit margin contracted significantly, with a 1,040-basis point drop to 18.3%.
  • Net Income: Skyline Champion's net income for the quarter plummeted by 95.2% to $2.8 million, primarily due to a charge related to water intrusion issues in homes sold from one of its plants prior to fiscal 2022.
  • Adjusted Net Income and EBITDA: Adjusted net income saw a substantial decrease of 37.7% to $36.0 million, and the adjusted EBITDA margin contracted by 560 basis points to 9.9%.

Despite the challenges faced during the quarter, including market headwinds and destocking by channel partners, Mark Yost, Skyline Champion's President and CEO, remains optimistic about the company's progress and strategic investments made during fiscal 2024.

CTA: Assess a company's true profitability and compare it to its competitors with the Owner Earnings API. Find out more here.

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