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Housing Charges Economy: +9.5% Case Shiller & DHI's Earnings Beat

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Tuesday, January 26, 2021

We started off slowly this week in terms of Q4 earnings results and economic data, but are catching up fast this morning. Aside from Beyond Meat (BYND - Free Report) shooting up 30% in today’s pre-market on a joint venture with PepsiCo (PEP - Free Report) to create plant-based snacks (terms of the deal not yet disclosed), we also get a new Case-Shiller home price index report.

The Case-Shiller numbers are from November, making it a lagging indicator on the already robust housing market. Thus, month-over-month and year-over-year gains were expected, and the report did not disappoint: +9.5% on the headline was an 110 basis-point improvement month over month, with the 20-City survey at +9.1% — its largest read since May 2014. Record-low interest rates, along with Americans moving away from the big cities, helped lead the charge. Tops again in November were Phoenix +13.8%, Seattle +12.7% and San Diego +12.3%.

Speaking of housing, homebuilder D.R. Horton (DHI - Free Report) put up better-than-expected numbers on both its top and bottom lines in its Q4 release this morning: $2.14 per share was nicely ahead of the $1.72 in the Zacks consensus, while $5.93 billion in quarterly revenues topped expectations by 6%. The numbers storm past the year-ago 99 cents per share on $4.02 billion in sales, and marks the eighth straight quarterly beat for the Zacks Rank #2 (Buy)-rated stock. For more on DHI’s earnings, click here.

Johnson & Johnson (JNJ - Free Report) , the healthcare products giant with a Covid-19 vaccine candidate still in development, also posted positive beats: $1.86 per share on $22.48 billion outpaced expectations by 5 cents per share on the bottom line and 4% on the top. In  the year-ago quarter, J&J posted $1.88 per share and $20.75 billion — demonstrating a clear money windfall for the company over the prolonged pandemic period. Shares are up 2% in today’s pre-market. For more on JNJ’s earnings, click here.

3M (MMM - Free Report) continues the Q4 beat-parade with $2.38 per share in earnings surpassing the $2.19 analysts were looking for. Sales in the quarter reached $8.58 billion, up 1.12% from expectations. Both numbers are improvements year over year, as well, further stringing out 3M’s comeback story. Shares had been down 3.3% year to date, but have made 1.7% of that back so far in early trading. For more on MMM’s earnings, click here.

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