Manufactured Home Builder Cavco Tops Sales Estimates in Seven of the Past Eight Quarters

(Source: The Motley Fool)  – The third home construction performance outlier honors go to (CVCO 0.98%), a Phoenix-based maker of manufactured homes that’s up 28% YTD as consumer demand for affordable housing remains strong.

In Cavco’s second quarter results, released Nov. 6, CEO Bill Boor said that the 60-year-old company saw “strong performance from all phases of our business production, retail, and our Financial Services,” within what he called a “fluid market with continuing macroeconomic  risks.”

According to Koyfin data, Cavco has topped analysts’ sales estimates in seven of the past eight quarters and beaten GAAP earnings per share expectations four of the past five times. Thanks to its recent gains, Cavco’s market cap is now $4.5 billion, although its stock has dipped about 5% from the all-time high it hit on Oct. 24.

While the broader U. S. home construction sector continues to feel the effects of high rates and stretched affordability, these three counter-cyclical outperformers stand as proof that not all construction-related companies are built the same. Service, affordability, and operational discipline can still prevail in an otherwise challenging environment.