Cavco Industries (CVCO) stock plummeted 19.03% during intraday trading on Friday, marking a significant decline for the factory-built housing producer.

The sharp drop followed the company's release of third-quarter financial results, which showed lower net income despite revenue growth. Cavco reported net income of $44.07 million, down from $56.46 million a year earlier, primarily due to deal costs associated with its acquisition of factory-built homes maker American Homestar.

While revenue increased 11.3% on higher home sales volume and selling prices, selling, general and administrative expenses grew 23% due to the addition of American Homestar and related transaction costs. CEO Bill Boor also noted slowed industry shipments in the third quarter but expressed optimism about national policy discussions on affordable housing and the upcoming spring selling season.