Cavco Industries: Initiation Of Coverage – Will Its Innovative Home Solutions Help Catalyze Growth? 

This is our first report on Cavco Industries, Inc., one of the leading home builders in the United States specializing in manufactured homes. The company has unveiled its financial results for the third quarter of the fiscal year 2024. On the whole, the results paint a mixed picture of the company’s performance during this period. The quarterly revenue was approximately $447 million, indicating a 1% sequential dip compared to the previous quarter. The decline in revenue was mainly because of a 13.7% decrease in the base business unit volume and a 5.3% drop in average revenue per home sold, which were partially offset by the Solitaire Homes acquisition contributing $33 million during the quarter. The average revenue per home decrease was mainly because of an increase in the proportion of single-wides sold and a decline in product pricing to a smaller extent. The company’s pretax income also fell from $52 million in the last quarter to $44 million in Q3.