Homebuilder Tri Pointe Homes (NYSE: TPH) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
Tri Pointe Homes beat analysts’ revenue expectations by 10% last quarter, reporting revenues of $902.4 million, down 21.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ backlog estimates.
Is Tri Pointe Homes a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Tri Pointe Homes’s revenue to decline 35.1% year on year to $743.1 million, a reversal from the 36.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 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 6.6% on average.
Looking at Tri Pointe Homes’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. KB Home’s revenues decreased 7.5% year on year, beating analysts’ expectations by 1.2%, and Lennar reported a revenue decline of 6.4%, falling short of estimates by 2.7%. KB Home’s stock price was unchanged after the resultswhile Lennar was down 4.3%.
Read our full analysis of KB Home’s results here and Lennar’s results here.
Investors in the industrials segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Tri Pointe Homes is down 1.5% during the same time and is heading into earnings with an average analyst price target of $38.60 (compared to the current share price of $33.01).
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