TRI Pointe Homes Earnings: Everything You Must Know Now

TRI Pointe Homes (NYSE:TPH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

TRI Pointe Homes Earnings Cheat Sheet

Revenue: Was the same at $47.5 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: TRI Pointe Homes reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0.05. It beat the average revenue estimate of $43.67 million.

Quoting Management: Douglas F. Bauer, Chief Executive Officer stated, “We are beginning to capitalize on the benefits of the imbedded growth in our homebuilding activities as a result of our strategic land acquisitions and the planned rollout of new communities. Although we increased our home prices, which reflects the significant underlying strength in our core markets, it did not slow absorption. We were raising prices to regulate the pace of sales and enhance our margins. Nonetheless, our monthly absorption rate increased to 6.4 new home orders per average selling community during the quarter. As a result, we ended the quarter with a record high backlog reflecting higher pricing that should continue to expand our gross margins and position the Company for a strong finish to the year.”

Key Stats (on next page)…

Revenue increased 70.31% from $27.89 million in the previous quarter. EPS increased 600% from $0.01 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.06 to a profit $0.07. For the current year, the average estimate has moved up from a profit of $0.26 to a profit of $0.30 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)