The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how TopBuild (NYSE: BLD) and the rest of the home builders stocks fared in Q4.
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 1.2%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.6% 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 $1.31 billion, up 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 revenue guidance missing analysts’ expectations.
TopBuild delivered the weakest full-year guidance update of the whole group. The stock is up 2.7% since reporting and currently trades at $310.
Is now the time to buy TopBuild? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EPS estimates.
The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $95.65.
Is now the time to buy Champion Homes? 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 10.7% since the results and currently trades at $108.93.
Read our full analysis of Toll Brothers’s results here.
LGI Homes (NASDAQ: LGIH)
Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.
LGI Homes reported revenues of $557.4 million, down 8.4% year on year. This print missed analysts’ expectations by 11%. It was a disappointing quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
LGI Homes had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is down 9.8% since reporting and currently trades at $68.52.
Read our full, actionable report on LGI 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 $1.25 billion, flat year on year. This result surpassed analysts’ expectations by 3.3%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ backlog estimates.
The stock is down 10.5% since reporting and currently trades at $32.42.
Read our full, actionable report on Tri Pointe Homes here, it’s free.
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