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In the last reported quarter, its earnings topped the Zacks Consensus Estimate by 9.9% and increased 45% year over year, driven by favorable housing dynamics and elevated demand trends in all markets combined with the limited supply of homes. The company's earnings topped analysts’ expectations in each of the trailing 11 quarters.
Also, the company’s total home sales revenues increased 15% from the prior year’s levels, backed by a 15% rise in new home deliveries.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings has declined 5.1% to 56 cents per share in the past 30 days. The estimated figure indicates a decline of 5.1% from 59 cents recorded a year ago. The consensus estimate for home sales revenues is pegged at $650.15 million, suggesting a fall of 9.3% from the prior-year quarter.
TRI Pointe’s revenues and earnings are expected to have ailed from persistent supply chain challenges in first-quarter 2022. Also, inflationary pressures have been a concern. The companies in the industry have been experiencing significant material cost inflation along with escalating land, labor and material costs. Also, the adverse effects of tightening global and domestic supply chains may have been a concern.
Solid demand trends, primarily driven by robust housing market fundamentals and a widespread shortage of housing supply, are likely to offset these woes. The imbalance in demand and supply of homes and rising material costs prompted builders to raise prices, which is expected to contribute to the top line.
TRI Pointe is expected to have benefited from the increasing backlog and rapidly developed return-based model. The company has been experiencing a broad-based activity level from a geographic and product segment standpoint. This trend is likely to have contributed to the company’s first-quarter revenues.
For the first quarter, TRI Pointe expects deliveries between 900 and 1,100 homes at ASP of $650,000-$660,000. It anticipates a homebuilding gross margin of 25-26% and SG&A, as a percentage of home sales revenue, within 13-13.5%. Moreover, it plans to open 15 new communities in the first quarter.
The Zacks Consensus Estimate for Homebuilding revenue is pegged at $646 million, which indicates a decrease of 10.2% from $719 million in the year-ago period. The consensus mark for new home deliveries of 979 units reflects a fall of 13.1% year over year. Yet, the same for average sales price (ASP) of homes delivered calls for a rise of 3.3% to $657,000.
The consensus mark for Financial Services revenues is pegged at $1.69 million, indicating a fall of 19.9% from a year ago.
The Zacks Consensus Estimate for new home orders is currently pegged at 1,748 units, suggesting a 12% year-over-year drop. The same for the backlog is pegged at 3,928 units for $705,000 ASP, implying growth of 2.7% homes in the backlog for almost 10% higher ASP year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predicts an earnings beat for TRI Pointe this time around. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Summit Materials, Inc. (SUM - Free Report) has an Earnings ESP of +5.26% and sports a Zacks Rank #2.
PotlatchDeltic Corporation (PCH - Free Report) has an Earnings ESP of +7.24% and holds a Zacks Rank #2.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank #2.
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Tri Pointe (TPH) to Report Q1 Earnings: What's in the Offing?
Tri Pointe Homes, Inc. (TPH - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before market open.
In the last reported quarter, its earnings topped the Zacks Consensus Estimate by 9.9% and increased 45% year over year, driven by favorable housing dynamics and elevated demand trends in all markets combined with the limited supply of homes. The company's earnings topped analysts’ expectations in each of the trailing 11 quarters.
Also, the company’s total home sales revenues increased 15% from the prior year’s levels, backed by a 15% rise in new home deliveries.
Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings has declined 5.1% to 56 cents per share in the past 30 days. The estimated figure indicates a decline of 5.1% from 59 cents recorded a year ago. The consensus estimate for home sales revenues is pegged at $650.15 million, suggesting a fall of 9.3% from the prior-year quarter.
Tri Pointe Homes Inc. Price and EPS Surprise
Tri Pointe Homes Inc. price-eps-surprise | Tri Pointe Homes Inc. Quote
Factors to Consider
TRI Pointe’s revenues and earnings are expected to have ailed from persistent supply chain challenges in first-quarter 2022. Also, inflationary pressures have been a concern. The companies in the industry have been experiencing significant material cost inflation along with escalating land, labor and material costs. Also, the adverse effects of tightening global and domestic supply chains may have been a concern.
Solid demand trends, primarily driven by robust housing market fundamentals and a widespread shortage of housing supply, are likely to offset these woes. The imbalance in demand and supply of homes and rising material costs prompted builders to raise prices, which is expected to contribute to the top line.
TRI Pointe is expected to have benefited from the increasing backlog and rapidly developed return-based model. The company has been experiencing a broad-based activity level from a geographic and product segment standpoint. This trend is likely to have contributed to the company’s first-quarter revenues.
For the first quarter, TRI Pointe expects deliveries between 900 and 1,100 homes at ASP of $650,000-$660,000. It anticipates a homebuilding gross margin of 25-26% and SG&A, as a percentage of home sales revenue, within 13-13.5%. Moreover, it plans to open 15 new communities in the first quarter.
The Zacks Consensus Estimate for Homebuilding revenue is pegged at $646 million, which indicates a decrease of 10.2% from $719 million in the year-ago period. The consensus mark for new home deliveries of 979 units reflects a fall of 13.1% year over year. Yet, the same for average sales price (ASP) of homes delivered calls for a rise of 3.3% to $657,000.
The consensus mark for Financial Services revenues is pegged at $1.69 million, indicating a fall of 19.9% from a year ago.
The Zacks Consensus Estimate for new home orders is currently pegged at 1,748 units, suggesting a 12% year-over-year drop. The same for the backlog is pegged at 3,928 units for $705,000 ASP, implying growth of 2.7% homes in the backlog for almost 10% higher ASP year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predicts an earnings beat for TRI Pointe this time around. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently, it has a Zacks Rank #4 (Sell) and an Earnings ESP of -5.92%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some companies in the Zacks Construction sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Summit Materials, Inc. (SUM - Free Report) has an Earnings ESP of +5.26% and sports a Zacks Rank #2.
PotlatchDeltic Corporation (PCH - Free Report) has an Earnings ESP of +7.24% and holds a Zacks Rank #2.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.