Homebuilder Tri Pointe Homes (NYSE:TPH) will be reporting earnings tomorrow before market open. Here’s what you need to know.
Tri Pointe Homes beat analysts’ revenue expectations by 7.5% last quarter, reporting revenues of $1.14 billion, up 36.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
Is Tri Pointe Homes a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tri Pointe Homes’s revenue to decline 3.7% year on year to $1.21 billion, improving from the 17.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.29 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tri Pointe Homes has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 13.3% on average.
Looking at Tri Pointe Homes’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Champion Homes delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 9.2%, and Taylor Morrison Home reported revenues up 16.7%, topping estimates by 9.5%. Champion Homes traded up 13.5% following the results while Taylor Morrison Home was also up 2.6%.
Read our full analysis of Champion Homes’s results here and Taylor Morrison Home’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the home builders stocks have shown solid performance, the group has generally underperformed, with share prices down 4.6% on average over the last month. Tri Pointe Homes is up 3.9% during the same time and is heading into earnings with an average analyst price target of $46.80 (compared to the current share price of $38.67).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
