Reflecting On Home Builders Stocks' Q4 Earnings: TopBuild (NYSE:BLD)

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at home builders stocks, starting with TopBuild (NYSE:BLD).

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%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.8% since the latest earnings results.

TopBuild (NYSE:BLD)

Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE:BLD) is a distributor and installer of insulation and other building products.

TopBuild reported revenues of $1.49 billion, up 13.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly and full-year revenue guidance slightly missing analysts’ expectations.

TopBuild delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 20.3% since reporting and currently trades at $386.71.

Read our full report on TopBuild 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.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.7% since reporting. It currently trades at $61.27.

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. As expected, the stock is down 2.4% since the results and currently trades at $67.54.

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 met analysts’ expectations. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 8.4% since reporting and currently trades at $82.43.

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

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 result surpassed analysts’ expectations by 3.6%. More broadly, it was a mixed quarter as it also logged a solid beat of analysts’ revenue estimates but a significant miss of analysts’ adjusted operating income estimates.

Tri Pointe Homes had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $46.36.

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

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