Home Builders Stocks Q4 Results: Benchmarking Tri Pointe Homes (NYSE:TPH)

Let’s dig into the relative performance of Tri Pointe Homes (NYSE:TPH) and its peers as we unravel the now-completed Q4 home builders earnings season.

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 13 home builders stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.6%.

In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.

Tri Pointe Homes (NYSE:TPH)

Established in 2009 in California, Tri Pointe Homes (NYSE:TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Tri Pointe Homes reported revenues of $972.6 million, down 22.4% year on year. This print exceeded analysts’ expectations by 3.6%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.

Tri Pointe Homes delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $46.27.

Is now the time to buy Tri Pointe Homes? Access our full analysis of the earnings results here, it’s free.

Best Q4: 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 $2.1 billion, down 10.9% year on year, outperforming analysts’ expectations by 7.2%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.90.

Is now the time to buy Taylor Morrison Home? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Meritage Homes (NYSE:MTH)

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Meritage Homes reported revenues of $1.44 billion, down 11.5% year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Meritage Homes delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 9% since the results and currently trades at $75.41.

Read our full analysis of Meritage Homes’s results here.

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 $656.6 million, up 1.8% year on year. This number was in line with analysts’ expectations. It was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 22.6% since reporting and currently trades at $93.22.

Read our full, actionable report on Champion Homes here, it’s free.

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 $2.71 billion, down 4.7% year on year. This result beat analysts’ expectations by 9.4%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $7,517.

Read our full, actionable report on NVR here, it’s free.

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