ArtistGNDphotography/E+ via Getty Images
- Shares of the homebuilder, Tri Pointe Homes (NYSE:TPH) are up 3% as Q2 earnings reflect robust home sales revenue supported by elevated demand, a boost and extension to share repurchases, and positive full-year guidance.
- Even with record high U.S. home prices, "demand trends remained elevated in all of our markets and at all of our price points, a sign that buyers remain motivated in a number of demographic segments in conjunction with the ongoing and widespread shortage of available housing supply," CEO Doug Bauer said in a statement.
- Home sales revenue of $1.0B increases 32% from $766.9M in Q2 of last year, and the average sales price of homes delivered increased 5% to $653K, compared with $624K in the same period a year ago.
- Q2 earnings per share of $1.00, up from $0.43 a year ago, beats the average analyst estimate of $0.82.
- Tri Pointe expects to deliver between 1,450-1,550 homes at an average sales price between $620K-630K in Q3 of this year.
- For the year, the homebuilder expects to deliver 6K-6.3K homes, unchanged from its previous guidance, at a price between $625K-635K, up from its prior guidance of $620K-630K. In 2020, TPH delivered 5,123 homes at an average price of $631K.
- "We posted company records in a number of key metrics for a second quarter, including home sales revenue, pre-tax profit, and quarter-ending backlog value," Bauer said.
- Backlog units of 3,902 homes in Q2, increases 53% from 2,558 in Q2 2020.
- Anticipates homebuilding gross margin percentage to be in the range of 23.5%-24.5% for Q3; compares with 24.6% in Q2 2021.
- Tri Pointe's full year guidance includes opening ~70 new communities and end the year with 120-130 active selling communities, unchanged from the guidance in its Q1 earnings report.
- Its board also approves the repurchase of up to an additional $250M of common stock and extended the term of the Repurchase Program through Dec. 31, 2022.
- Within the repurchase program, it already purchased $243M, or 12,175,129 shares; it can purchase a total aggregate value of $500M through Dec. 31 of next year.
- Earlier, Tri Pointe Homes EPS beats by $0.18, beats on revenue, and boosts buyback by $250M.