Cavco Industries (CVCO) Tops Q1 EPS by 20c, Beats on Revenues

Cavco Industries (NASDAQ: CVCO) reported Q1 EPS of $1.28, $0.20 better than the analyst estimate of $1.08. Revenue for the quarter came in at $206.8 million versus the consensus estimate of $200.7 million.

Financial highlights include the following:

• Net revenue for the first quarter of fiscal year 2018 totaled $206.8 million, up 11.7% from $185.1 million for the comparable prior year period. The increase was primarily from improved home sales volume and a larger proportion of higher priced homes sold.
• Income before income taxes was $15.7 million for the first quarter of fiscal 2018, an 86.9% increase from $8.4 million income before income taxes in the comparable quarter last year. The improvement was from increased home sales as well as stronger earnings in the financial services segment compared to last year’s first fiscal quarter, as the segment's prior year results were significantly impacted by high insurance claims activity.
• Income tax expense was $3.9 million with an effective tax rate of 24.9% for the first quarter of fiscal year 2018 compared to $3.0 million and an effective tax rate of 35.4% in the same quarter of the prior year. The current quarter contains a benefit of $1.4 million related to the Company's required implementation of Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting, which, among other items, requires the Company to record excess tax benefits on exercises of stock options as a reduction of income tax expense in the consolidated statement of comprehensive income, whereas they were previously recognized in equity.
• Net income was $11.8 million for the first quarter of fiscal year 2018, compared to net income of $5.4 million in the same quarter of the prior year, a 118.5% increase.
• Net income per share for the first quarter of fiscal 2018, based on basic and diluted weighted average shares outstanding, was $1.30 and $1.28, respectively, compared to net income per share of $0.61 and $0.60, respectively, for the comparable quarter last year.

For earnings history and earnings-related data on Cavco Industries (CVCO) click here.

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