614028

Q1 Earnings Highs And Lows: Skyline Champion (NYSE:SKY) Vs The Rest Of The Home Builders Stocks


Adam Hejl /
2024/07/10 4:57 am EDT

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Skyline Champion (NYSE:SKY) and the best and worst performers in the home builders industry.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 12 home builders stocks we track reported a decent Q1; on average, revenues beat analyst consensus estimates by 3.8%. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and home builders stocks have had a rough stretch, with share prices down 6.9% on average since the previous earnings results.

Weakest Q1: Skyline Champion (NYSE:SKY)

Founded in 1951, Skyline Champion (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.

Skyline Champion reported revenues of $536.4 million, up 9.1% year on year, falling short of analysts' expectations by 4.4%. It was a weak quarter for the company with a miss of analysts' earnings and volume estimates.

“Fiscal 2024 was a transformative year for our organization, marked by strategic investments and expanding our market presence," said Mark Yost, Skyline Champion’s President and Chief Executive Officer.

Skyline Champion Total Revenue

Skyline Champion delivered the weakest performance against analyst estimates of the whole group. The stock is down 12.3% since reporting and currently trades at $68.12.

Read our full report on Skyline Champion here, it's free.

Best Q1: Tri Pointe Homes (NYSE:TPH)

Established in 2009 in California, Tri Pointe Homes (NYSE:TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Tri Pointe Homes reported revenues of $939.4 million, up 20.5% year on year, outperforming analysts' expectations by 8.8%. It was a stunning quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' backlog sales estimates.

Tri Pointe Homes Total Revenue

Tri Pointe Homes pulled off the fastest revenue growth among its peers. The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $36.65.

Is now the time to buy Tri Pointe Homes? Access our full analysis of the earnings results here, it's free.

LGI Homes (NASDAQ:LGIH)

Based in Texas, LGI Homes (NASDAQ:LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.

LGI Homes reported revenues of $390.9 million, down 19.8% year on year, falling short of analysts' expectations by 4%. It was a slower quarter for the company with a miss of analysts' earnings estimates.

LGI Homes had the slowest revenue growth in the group. As expected, the stock is down 10.6% since the results and currently trades at $85.76.

Read our full analysis of LGI Homes's results here.

Installed Building Products (NYSE:IBP)

Founded in 1977, Installed Building Products (NYSE:IBP) is a company specializing in the installation of insulation, waterproofing, and other complementary building products for residential and commercial construction.

Installed Building Products reported revenues of $692.9 million, up 5.1% year on year, surpassing analysts' expectations by 1.4%. Looking more broadly, it was a weaker quarter for the company with a miss of analysts' organic revenue estimates.

The stock is down 10.9% since reporting and currently trades at $206.78.

Read our full, actionable report on Installed Building Products here, it's free.

Meritage Homes (NYSE:MTH)

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Meritage Homes reported revenues of $1.47 billion, up 14.8% year on year, surpassing analysts' expectations by 15.5%. Looking more broadly, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates but a miss of analysts' backlog sales estimates.

Meritage Homes achieved the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $154.23.

Read our full, actionable report on Meritage Homes here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.