Back to top

Image: Bigstock

Howard Hughes to Report Q3 Earnings: What Should Investors Do?

Read MoreHide Full Article

Key Takeaways

  • HHH is set to report Q3 results on Nov. 5, with revenues expected to rise 64.7% and EPS to fall 49%.
  • HHH's Q3 results may benefit from housing demand, favorable land pricing and a healthy leasing trend.
  • Vantage buyout may boost HHH's revenues, while lower land sales and builder price participation pose risks.

Howard Hughes Holdings (HHH - Free Report) is set to report its third-quarter 2026 results on Nov. 5, after the market close.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $642.8 billion, indicating an increase of 64.7% from the year-ago quarter’s reported figure.

The consensus mark for earnings per share (EPS) is pinned at $1.03 and declined 33 cents over the past month. It also indicates a decline of 49% from the figure reported in the year-ago quarter.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The company’s EPS beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 120.9%. The graph below depicts this surprising history:

 

 

Q3 Earnings Whispers for HHH

However, our proprietary model does not conclusively predict an earnings beat for Howard Hughes this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Howard Hughes has an Earnings ESP of -32.68% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Factors Likely to Shape HHH’s Q3 Results

Howard Hughes is expected to have benefited from continued housing demand across its master-planned communities despite broader housing market challenges. Favorable land pricing and sustained homebuyer interest across its communities are likely to have supported the company’s real estate operations in the third quarter of 2026.

The company's Operating Assets segment is expected to have benefited from healthy leasing momentum and the expiration of rent abatements across its portfolio. These factors are likely to have supported rental revenues and net operating income during the quarter.

Moreover, the Vantage acquisition is expected to have bolstered HHH's quarterly revenues through its first full-quarter contribution. The company's focus on disciplined underwriting and the ongoing repositioning of Vantage’s investment portfolio may have improved its insurance operations.

Q3 Projections for HHH

The Zacks Consensus Estimate for Howard Hughes’ condominium rights and unit sales revenues is currently pegged at $11.5 million, which indicates an increase from $0.1 million in the year-ago quarter.

The consensus mark for rental revenues is pegged at $115.1 million, up from the $111.4 million reported in the year-ago period.

However, the consensus mark for Master Planned Communities land sales revenues is pinned at $137.9 million, down from $248.5 million in the year-ago period.

The Zacks Consensus Estimate for builder price participation revenues is currently pinned at $6.9 million, down from $16 million in the prior-year period.

The consensus mark for other revenues is pegged at $12 million, down from the $14.2 million reported in the year-ago period.

HHH’s Price Performance & Valuation

Howard Hughes’ shares have gained 16.2% in the past three months, outperforming the Zacks Real Estate - Development’s 2% decrease and the S&P 500 Index’s 3.1% decline over the same period. The stock also outperformed industry peers Forestar Group Inc. (FOR - Free Report) and Five Point Holdings, LLC (FPH - Free Report) , whose shares declined 20.5% and 12.6%, respectively.

FOR and FPH compete with HHH in residential land development and master-planned communities. Forestar primarily develops finished residential lots for homebuilders, while Five Point focuses on large-scale, mixed-use communities in California. HHH offers broader residential, commercial and income-producing real estate operations.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

From a valuation standpoint, Howard Hughes’ shares are trading at a premium. In terms of forward 12-month P/E, HHH stock is trading at 19.91X compared with the Zacks Real Estate- Development industry’s 18.77X.

Shares of FOR and FPH are currently trading at P/E ratios of 7.64X and 18.94X, respectively.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

What Should Investors Do?

Howard Hughes’ resilient housing demand, favorable land pricing and steady leasing activity are expected to have supported its third-quarter performance. The first full-quarter contribution from Vantage is likely to have boosted revenues significantly while strengthening the company’s diversified business model.

Although HHH trades at a premium to the industry, its solid real estate fundamentals and long-term growth opportunities justify the higher valuation.

Given these positives, investors may consider buying HHH stock ahead of its third-quarter earnings release to capitalize on its growth prospects.

Published in