Thursday, February 7, 2019

Why Skyline Champion Stock Just Jumped 15%

True to their name, shares of Skyline Champion Corporation (NYSEMKT:SKY) are airborne today, up 15.1% as of 11:45 a.m. EST after the company released a boffo fiscal Q3 2019 (no, that's not a typo; Skyline operates on a weird financial calendar) earnings report.

Expected to earn just $0.22 per share on $351.9 million in sales last quarter, the Elkhart, Ind., manufacturer of modular homes instead reported last night that pro forma Q3 earnings were $0.27 per share, and sales came in at $354.7 million -- ahead of estimates on both counts.

Skyline's GAAP results weren't quite as strong as these pro-forma numbers suggest -- but they were still pretty good. Total homes sold increased 16%, and sales climbed more than 20% year over year. Thanks to a big decrease in income tax, Skyline's per-share profits leapt even higher -- up 73% to $0.19 per diluted share.

CEO Keith Anderson credited "merger synergies from [Skyline's] combined businesses" for the big increase in profits and predicted that production expansions in California and (especially) Louisiana "will help drive market share" in the coming quarters and years.

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