Wrapping up Q4 earnings, we look at the numbers and key takeaways for the home builders stocks, including Champion Homes (NYSE:SKY) and its peers.
Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.
The 12 home builders stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.4%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.9% since the latest earnings results.
Best Q4: Champion Homes (NYSE:SKY)
Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.
Champion Homes reported revenues of $644.9 million, up 15.3% year on year. This print exceeded analysts’ expectations by 9.2%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EPS estimates.
“Champion’s strong performance this quarter reflects our ability to earn new customers and deliver profitable growth across our family of brands,” said Tim Larson, President and Chief Executive Officer of Champion Homes.
The stock is up 2.4% since reporting and currently trades at $94.99.
Is now the time to buy Champion Homes? Access our full analysis of the earnings results here, it’s free.
Taylor Morrison Home (NYSE:TMHC)
Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE:TMHC) builds single family homes and communities across the United States.
Taylor Morrison Home reported revenues of $2.36 billion, up 16.7% year on year, outperforming analysts’ expectations by 9.5%. The business had a strong quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Taylor Morrison Home delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 1.8% since reporting. It currently trades at $61.19.
Is now the time to buy Taylor Morrison Home? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Toll Brothers (NYSE:TOL)
Started by two brothers who started by building and selling just one home in Pennsylvania, today Toll Brothers (NYSE:TOL) is a luxury homebuilder across the United States.
Toll Brothers reported revenues of $1.86 billion, down 4.6% year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 12% since the results and currently trades at $107.38.
Read our full analysis of Toll Brothers’s results here.
NVR (NYSE:NVR)
Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.
NVR reported revenues of $2.85 billion, up 17% year on year. This print surpassed analysts’ expectations by 2.3%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ backlog estimates.
The stock is down 12.2% since reporting and currently trades at $7,361.
Read our full, actionable report on NVR here, it’s free.
KB Home (NYSE:KBH)
The first homebuilder to be listed on the NYSE, KB Home (NYSE:KB) is a homebuilding company targeting the first-time home buyer and move-up buyer markets.
KB Home reported revenues of $2 billion, up 19.5% year on year. This number met analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ backlog estimates but a significant miss of analysts’ EBITDA estimates.
KB Home delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 1.1% since reporting and currently trades at $63.39.
Read our full, actionable report on KB Home here, it’s free.
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