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Dream Finders Homes (DFH) to Post Q2 Earnings: What's in Store?
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Dream Finders Homes, Inc. (DFH - Free Report) is scheduled to report second-quarter 2021 results on Aug 10, before the opening bell.
Shares of Dream Finders started trading on the NASDAQ Global Select Market under the symbol “DFH” on Jan 21, 2021.
For first-quarter 2021, the company’s earnings met the Zacks Consensus Estimate but revenues missed the same by 4.8%. That said, net income of $16.1 million grew 145% year over year. Revenues of $343.6 million also increased 82% on a year-over-year basis.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at 42 cents per share over the past 30 days. Nonetheless, the estimated figure indicates a 133.3% increase sequentially. Also, the consensus mark for revenues is $502 million, suggesting 45.9% sequential growth.
Dream Finders is likely to have witnessed impressive growth in second-quarter 2021, given positive momentum of the housing market in the United States. In addition to a low mortgage rate environment, the rising trend of work from home owing to the coronavirus outbreak has been prompting many families to purchase a house, thereby boosting demand. Yet, there’s no denying that the U.S. housing data was weak sequentially for April and May as a rise in lumber prices along with lack of supply took a toll on sales pace and pushed average home prices higher nationwide. Nonetheless, builders have been witnessing higher demand amid the COVID 19 pandemic, with Americans seeking more space for offices and classrooms.
Also, the company’s focus on regular acquisitions to boost its portfolio and footprint bodes well. The company has also been reaping benefits from the successful execution of initiatives to boost profitability, with focus on entry-level homes.
From the margin perspective, input cost inflation — especially lumber — and high costs associated with labor are expected to have weighed on margins to some extent. That said, higher leverage owing to solid demand across its buyer groups is expected to have mitigated the risks.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Dream Finders for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Its Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
M.D.C. Holdings, Inc. — which currently holds a Zacks Rank #3 — reported impressive second-quarter 2021 results. Both the top and bottom lines topped their respective Zacks Consensus Estimate as well as rose strongly on a year-over-year basis. The upside was mainly driven by robust housing market fundamentals and solid execution despite industry challenges.
Meritage Homes Corporation’s (MTH - Free Report) — also a Zacks Rank #3 company — reported second-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, the top and bottom lines improved significantly on a year-over-year basis. Total revenues and earnings topped the Zacks Consensus Estimate for the 11th straight quarter.
PulteGroup Inc. (PHM - Free Report) — currently carrying a Zacks Rank #3 — reported second-quarter 2021 results, wherein earnings met the Zacks Consensus Estimate but revenues missed the same. Nonetheless, both earnings and revenues grew year over year, buoyed by solid housing market momentum as well as limited inventory of new and existing homes.
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Dream Finders Homes (DFH) to Post Q2 Earnings: What's in Store?
Dream Finders Homes, Inc. (DFH - Free Report) is scheduled to report second-quarter 2021 results on Aug 10, before the opening bell.
Shares of Dream Finders started trading on the NASDAQ Global Select Market under the symbol “DFH” on Jan 21, 2021.
For first-quarter 2021, the company’s earnings met the Zacks Consensus Estimate but revenues missed the same by 4.8%. That said, net income of $16.1 million grew 145% year over year. Revenues of $343.6 million also increased 82% on a year-over-year basis.
Trend in Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at 42 cents per share over the past 30 days. Nonetheless, the estimated figure indicates a 133.3% increase sequentially. Also, the consensus mark for revenues is $502 million, suggesting 45.9% sequential growth.
Dream Finders Homes, Inc. Price and EPS Surprise
Dream Finders Homes, Inc. price-eps-surprise | Dream Finders Homes, Inc. Quote
Factors to Consider
Dream Finders is likely to have witnessed impressive growth in second-quarter 2021, given positive momentum of the housing market in the United States. In addition to a low mortgage rate environment, the rising trend of work from home owing to the coronavirus outbreak has been prompting many families to purchase a house, thereby boosting demand. Yet, there’s no denying that the U.S. housing data was weak sequentially for April and May as a rise in lumber prices along with lack of supply took a toll on sales pace and pushed average home prices higher nationwide. Nonetheless, builders have been witnessing higher demand amid the COVID 19 pandemic, with Americans seeking more space for offices and classrooms.
Also, the company’s focus on regular acquisitions to boost its portfolio and footprint bodes well. The company has also been reaping benefits from the successful execution of initiatives to boost profitability, with focus on entry-level homes.
From the margin perspective, input cost inflation — especially lumber — and high costs associated with labor are expected to have weighed on margins to some extent. That said, higher leverage owing to solid demand across its buyer groups is expected to have mitigated the risks.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Dream Finders for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Its Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
M.D.C. Holdings, Inc. — which currently holds a Zacks Rank #3 — reported impressive second-quarter 2021 results. Both the top and bottom lines topped their respective Zacks Consensus Estimate as well as rose strongly on a year-over-year basis. The upside was mainly driven by robust housing market fundamentals and solid execution despite industry challenges.
Meritage Homes Corporation’s (MTH - Free Report) — also a Zacks Rank #3 company — reported second-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, the top and bottom lines improved significantly on a year-over-year basis. Total revenues and earnings topped the Zacks Consensus Estimate for the 11th straight quarter.
PulteGroup Inc. (PHM - Free Report) — currently carrying a Zacks Rank #3 — reported second-quarter 2021 results, wherein earnings met the Zacks Consensus Estimate but revenues missed the same. Nonetheless, both earnings and revenues grew year over year, buoyed by solid housing market momentum as well as limited inventory of new and existing homes.