We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Century Communities (CCS) Q4 Earnings & Revenues Top, Up Y/Y
Read MoreHide Full Article
Century Communities, Inc. (CCS - Free Report) reported impressive results in fourth-quarter 2023, wherein earnings and revenues topped the Zacks Consensus Estimate and grew year over year. With this, the company’s earnings and revenues surpassed the consensus mark in each of the four consecutive quarters.
The remarkable uptrend in the company’s results was attributable to record quarterly home deliveries thanks to increased levels of home starts and continued improvements in cycle times. The ongoing demand trend for affordable homes sparked by low existing and new home inventory, and a high mortgage rate environment is backing the growth momentum of the company. Leveraging this market scenario, CCS remains optimistic about the 2024 outlook, wherein it expects the total home deliveries and home sales revenues to increase on a year-over-year basis.
Shares of this homebuilding company inched down 0.8% in the after-market trading session on Jan 31.
Inside the Headlines
The company reported quarterly adjusted earnings per share (EPS) of $2.93, which topped the Zacks Consensus Estimate of earnings of $2.27 per share by 29.1%. The metric grew 8.1% year over year from EPS of $2.71.
Century Communities, Inc. Price, Consensus and EPS Surprise
Total revenues of $1.21 billion also beat the consensus mark of $915.9 million by 31.6% and increased 2.2% year over year from $1.18 billion.
The quarter’s adjusted EBITDA increased 12.4% to $147.1 million from the year-ago quarter. Adjusted EBITDA margin expanded 110 basis points (bps) to 12.2% year over year.
Segmental Details
Homebuilding: The segment's revenues of $1.19 billion increased 2.9% from the year-ago quarter’s level of $1.16 billion. The number of homes delivered was a quarterly record of 3,157 units, up 8.7% from the year-ago period’s levels. However, the average selling price, or ASP, declined 5.4% from a year ago to $375,500.
Net new home contracts grew 86% to 2,340 units from the prior year’s reported value of 1,258 units. Quarter-end backlog totaled 1,070 homes, down 40.9% from the year-ago figure. Further, potential housing revenues from backlog declined 40.3% from the prior-year period to $400.8 million. On the other hand, the backlog ASP inched up 1% year over year to $374,600.
As of Dec 31, 2023, the selling community count was 251, up 20.7% from the year-ago period’s value of 208.
Within homebuilding, the adjusted homebuilding gross margin (excluding interest and inventory impairment) expanded 320 bps year over year to 23%. Selling, general and administrative expenses (SG&A) — as a percentage of housing revenues — increased 160 bps from the year-ago figure to 11.1%.
Total lot inventory at the end of Dec 31, 2023, increased 38.8% to 73,720 of which 30,623 was owned and 43,097 was controlled.
Financial Services: The segment's revenues declined 28.6% year over year to $16.5 million. Pretax income was $1.8 million in the reported quarter.
2023 Highlights
Total revenues were $3.69 billion, down 18.2% from $4.51 billion reported in the prior year. Homebuilding revenues were $3.61 billion, down from $4.41 billion reported in 2022. Earnings were $8.09 per share, down from earnings of $16.16 per share reported in 2022.
Total homes delivered were 9,568 units in fiscal 2023, down 9.7% from 10,594 units in 2022. Adjusted homebuilding gross margin (excluding interest and inventory impairment) was 22.5%, down 350 bps from 26% reported in 2022.
Financial Position
Century Communities had cash and cash equivalents of $226.2 million as of Dec 31, 2023, down from $296.7 million in 2022 end. The company had a total liquidity of $1.1 billion, including $328 million of cash.
As of the end of 2023, the net homebuilding debt-to-capital ratio was 22.4%, down from 23.5% in 2022 end.
2024 Outlook
For the full year, CCS expects home deliveries to range between 10,000 homes and 11,000 homes. The home sales revenues are expected to be between $3.8 billion and $4.2 billion.
PulteGroup Inc. (PHM - Free Report) reported mixed results in fourth-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimates but revenues missed the same. Both metrics decreased year over year. Shares of this notable homebuilder lost more than 1% following the earnings release on Jan 30.
Nonetheless, during the latter part of the fourth quarter, PulteGroup observed a notable surge in buyer activity, mainly attributed to declining interest rates. December emerged as the quarter's peak sales month. With the anticipation of sustained lower interest rates in 2024, the company remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
D.R. Horton, Inc. (DHI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
DHI reported adjusted earnings of $2.82 per share for the fiscal first quarter, which missed the Zacks Consensus Estimate of earnings of $2.88 per share by 2.1% but improved 2% from the year-ago figure of earnings of $2.76 per share. Total revenues (Homebuilding, Forestar, Rental and Financial Services) were $7.73 billion, up 6.5% year over year. The reported figure topped the consensus mark of $7.72 billion by 1.4%.
KB Home (KBH - Free Report) reported better-than-expected results in fourth-quarter fiscal 2023 (ended Nov 30, 2023). Both earnings and revenues beat the Zacks Consensus Estimate. With this, the company’s earnings and revenues surpassed the consensus mark in each of the four consecutive quarters.
Looking forward to the first quarter and the entirety of 2024, KBH foresees enhanced conditions in the housing market and ongoing positive trends in the supply chain. Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability to effectively navigate potential fluctuations in housing market conditions.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Century Communities (CCS) Q4 Earnings & Revenues Top, Up Y/Y
Century Communities, Inc. (CCS - Free Report) reported impressive results in fourth-quarter 2023, wherein earnings and revenues topped the Zacks Consensus Estimate and grew year over year. With this, the company’s earnings and revenues surpassed the consensus mark in each of the four consecutive quarters.
The remarkable uptrend in the company’s results was attributable to record quarterly home deliveries thanks to increased levels of home starts and continued improvements in cycle times. The ongoing demand trend for affordable homes sparked by low existing and new home inventory, and a high mortgage rate environment is backing the growth momentum of the company. Leveraging this market scenario, CCS remains optimistic about the 2024 outlook, wherein it expects the total home deliveries and home sales revenues to increase on a year-over-year basis.
Shares of this homebuilding company inched down 0.8% in the after-market trading session on Jan 31.
Inside the Headlines
The company reported quarterly adjusted earnings per share (EPS) of $2.93, which topped the Zacks Consensus Estimate of earnings of $2.27 per share by 29.1%. The metric grew 8.1% year over year from EPS of $2.71.
Century Communities, Inc. Price, Consensus and EPS Surprise
Century Communities, Inc. price-consensus-eps-surprise-chart | Century Communities, Inc. Quote
Total revenues of $1.21 billion also beat the consensus mark of $915.9 million by 31.6% and increased 2.2% year over year from $1.18 billion.
The quarter’s adjusted EBITDA increased 12.4% to $147.1 million from the year-ago quarter. Adjusted EBITDA margin expanded 110 basis points (bps) to 12.2% year over year.
Segmental Details
Homebuilding: The segment's revenues of $1.19 billion increased 2.9% from the year-ago quarter’s level of $1.16 billion. The number of homes delivered was a quarterly record of 3,157 units, up 8.7% from the year-ago period’s levels. However, the average selling price, or ASP, declined 5.4% from a year ago to $375,500.
Net new home contracts grew 86% to 2,340 units from the prior year’s reported value of 1,258 units. Quarter-end backlog totaled 1,070 homes, down 40.9% from the year-ago figure. Further, potential housing revenues from backlog declined 40.3% from the prior-year period to $400.8 million. On the other hand, the backlog ASP inched up 1% year over year to $374,600.
As of Dec 31, 2023, the selling community count was 251, up 20.7% from the year-ago period’s value of 208.
Within homebuilding, the adjusted homebuilding gross margin (excluding interest and inventory impairment) expanded 320 bps year over year to 23%. Selling, general and administrative expenses (SG&A) — as a percentage of housing revenues — increased 160 bps from the year-ago figure to 11.1%.
Total lot inventory at the end of Dec 31, 2023, increased 38.8% to 73,720 of which 30,623 was owned and 43,097 was controlled.
Financial Services: The segment's revenues declined 28.6% year over year to $16.5 million. Pretax income was $1.8 million in the reported quarter.
2023 Highlights
Total revenues were $3.69 billion, down 18.2% from $4.51 billion reported in the prior year. Homebuilding revenues were $3.61 billion, down from $4.41 billion reported in 2022. Earnings were $8.09 per share, down from earnings of $16.16 per share reported in 2022.
Total homes delivered were 9,568 units in fiscal 2023, down 9.7% from 10,594 units in 2022. Adjusted homebuilding gross margin (excluding interest and inventory impairment) was 22.5%, down 350 bps from 26% reported in 2022.
Financial Position
Century Communities had cash and cash equivalents of $226.2 million as of Dec 31, 2023, down from $296.7 million in 2022 end. The company had a total liquidity of $1.1 billion, including $328 million of cash.
As of the end of 2023, the net homebuilding debt-to-capital ratio was 22.4%, down from 23.5% in 2022 end.
2024 Outlook
For the full year, CCS expects home deliveries to range between 10,000 homes and 11,000 homes. The home sales revenues are expected to be between $3.8 billion and $4.2 billion.
Zacks Rank & Some Recent Construction Releases
Century Communities currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PulteGroup Inc. (PHM - Free Report) reported mixed results in fourth-quarter 2023, wherein earnings surpassed the Zacks Consensus Estimates but revenues missed the same. Both metrics decreased year over year. Shares of this notable homebuilder lost more than 1% following the earnings release on Jan 30.
Nonetheless, during the latter part of the fourth quarter, PulteGroup observed a notable surge in buyer activity, mainly attributed to declining interest rates. December emerged as the quarter's peak sales month. With the anticipation of sustained lower interest rates in 2024, the company remains optimistic that the enhanced affordability landscape will continue to attract prospective buyers.
D.R. Horton, Inc. (DHI - Free Report) reported first-quarter fiscal 2024 (ended Dec 31, 2023) results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
DHI reported adjusted earnings of $2.82 per share for the fiscal first quarter, which missed the Zacks Consensus Estimate of earnings of $2.88 per share by 2.1% but improved 2% from the year-ago figure of earnings of $2.76 per share. Total revenues (Homebuilding, Forestar, Rental and Financial Services) were $7.73 billion, up 6.5% year over year. The reported figure topped the consensus mark of $7.72 billion by 1.4%.
KB Home (KBH - Free Report) reported better-than-expected results in fourth-quarter fiscal 2023 (ended Nov 30, 2023). Both earnings and revenues beat the Zacks Consensus Estimate. With this, the company’s earnings and revenues surpassed the consensus mark in each of the four consecutive quarters.
Looking forward to the first quarter and the entirety of 2024, KBH foresees enhanced conditions in the housing market and ongoing positive trends in the supply chain. Leveraging the advantages of its Built to Order model, which provides buyers with choices, flexibility and affordability, the company is confident in its ability to effectively navigate potential fluctuations in housing market conditions.