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In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 68.2% and 23.2%, respectively. On a year-over-year basis, its earnings declined 14% and revenues decreased by 2.6%.
This homebuilding company’s earnings topped the consensus mark in each of the trailing seven quarters.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $4.27 in the past 60 days. The estimated figure indicates an 8.6% decrease from $4.67 per share reported in the year-ago quarter.
The consensus mark for revenues is pegged at $1.07 billion, suggesting a 5.4% rise from the year-ago quarter’s reported figure.
Factors to Note
M/I Homes is likely to have generated lower earnings in the to-be-reported quarter despite higher revenues, owing to strikingly high mortgage rates, higher material and labor costs, as well as uncertain economic conditions.
Nonetheless, the company’s focus on single-family homes and attached townhomes for first-time, millennial, move-up, empty-nester and luxury buyers is likely to have driven growth. Homebuyers are encountering a limited supply of pre-owned homes, prompting them to shift their focus toward builders, who have ramped up their construction efforts to meet the growing demand. MHO, like other homebuilding companies, has been riding high on this tailwind despite the continuous challenges.
The Zacks Consensus Estimate for Homebuilding revenues of $1,040 million suggests an increase from $993 million reported a year ago. The consensus mark for homes delivered is pegged at 2,105 units versus 2,026 units a year ago. The same for the average home closing price is likely to be $494,000, up from $487,000 reported a year ago.
The Zacks Consensus Estimate for new contracts is pegged at 1,889 homes, up from 1,349 homes reported a year ago.
The Zacks Consensus Estimate for backlog is pinned at 3,292 homes compared with 4,536 homes reported in the prior year.
The same for Financial Services revenues of $27 million suggests a rise from the year-ago level of $20.1 million.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MHO this time around. A 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
KBR’s earnings topped the consensus mark in all the last four quarters, the average being 10.8%. Earnings for the to-be-reported quarter are expected to increase 12.3% year over year.
Construction Partners, Inc. (ROAD - Free Report) has an Earnings ESP of +2.91% and a Zacks Rank #1.
ROAD’s earnings topped the consensus mark in three of the last four quarters, the average being 10.6%. Earnings for the to-be-reported quarter are expected to rise 108% year over year.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in all the last four quarters, the average being 147.4%. Earnings for the to-be-reported quarter are expected to grow 4.7% year over year.
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M/I Homes (MHO) Gears Up for Q3 Earnings: What to Expect?
M/I Homes, Inc. (MHO - Free Report) is slated to report third-quarter 2023 results on Oct 26, before market open.
In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 68.2% and 23.2%, respectively. On a year-over-year basis, its earnings declined 14% and revenues decreased by 2.6%.
This homebuilding company’s earnings topped the consensus mark in each of the trailing seven quarters.
Trend in Estimates
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained stable at $4.27 in the past 60 days. The estimated figure indicates an 8.6% decrease from $4.67 per share reported in the year-ago quarter.
M/I Homes, Inc. Price and EPS Surprise
M/I Homes, Inc. price-eps-surprise | M/I Homes, Inc. Quote
The consensus mark for revenues is pegged at $1.07 billion, suggesting a 5.4% rise from the year-ago quarter’s reported figure.
Factors to Note
M/I Homes is likely to have generated lower earnings in the to-be-reported quarter despite higher revenues, owing to strikingly high mortgage rates, higher material and labor costs, as well as uncertain economic conditions.
Nonetheless, the company’s focus on single-family homes and attached townhomes for first-time, millennial, move-up, empty-nester and luxury buyers is likely to have driven growth. Homebuyers are encountering a limited supply of pre-owned homes, prompting them to shift their focus toward builders, who have ramped up their construction efforts to meet the growing demand. MHO, like other homebuilding companies, has been riding high on this tailwind despite the continuous challenges.
The Zacks Consensus Estimate for Homebuilding revenues of $1,040 million suggests an increase from $993 million reported a year ago. The consensus mark for homes delivered is pegged at 2,105 units versus 2,026 units a year ago. The same for the average home closing price is likely to be $494,000, up from $487,000 reported a year ago.
The Zacks Consensus Estimate for new contracts is pegged at 1,889 homes, up from 1,349 homes reported a year ago.
The Zacks Consensus Estimate for backlog is pinned at 3,292 homes compared with 4,536 homes reported in the prior year.
The same for Financial Services revenues of $27 million suggests a rise from the year-ago level of $20.1 million.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for MHO this time around. A 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. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some companies in the Zacks Construction sector that, according to our model, have the right combination of elements to post an earnings beat in the respective quarters to be reported.
KBR, Inc. (KBR - Free Report) has an Earnings ESP of +6.36% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
KBR’s earnings topped the consensus mark in all the last four quarters, the average being 10.8%. Earnings for the to-be-reported quarter are expected to increase 12.3% year over year.
Construction Partners, Inc. (ROAD - Free Report) has an Earnings ESP of +2.91% and a Zacks Rank #1.
ROAD’s earnings topped the consensus mark in three of the last four quarters, the average being 10.6%. Earnings for the to-be-reported quarter are expected to rise 108% year over year.
Dycom Industries, Inc. (DY - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #2.
DY’s earnings topped the consensus mark in all the last four quarters, the average being 147.4%. Earnings for the to-be-reported quarter are expected to grow 4.7% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.