Skyline Champion Earnings Perspective: Return On Invested Capital


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


According to Benzinga Pro, during Q1, Skyline Champion (NYSE:SKY) earned $57.51 million, a 23.29% increase from the preceding quarter. Skyline Champion also posted a total of $510.20 million in sales, a 13.97% increase since Q4. Skyline Champion earned $46.65 million, and sales totaled $447.65 million in Q4.

What Is ROIC?

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Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Skyline Champion posted an ROIC of 8.45%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q1, Skyline Champion posted an ROIC of 8.45%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Skyline Champion, the positive return on invested capital ratio of 8.45% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

Skyline Champion reported Q1 earnings per share at $0.75/share, which beat analyst predictions of $0.51/share.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: EarningsBZI-ROCE