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INCLINE VILLAGE, Nev. - On Thursday, Tri Pointe Homes, Inc. (NYSE:TPH) reported third-quarter earnings and revenue that surpassed analyst expectations, despite facing a challenging housing market environment.
The homebuilder’s shares rose 3.53% in pre-market trading after the release.
The company reported adjusted earnings of $0.71 per share, significantly exceeding the analyst consensus estimate of $0.52. Revenue came in at $817.3 million, well above the $736.2 million analysts had projected. However, both metrics showed year-over-year declines, with revenue falling 26.6% from $1.1 billion in the same quarter last year.
Tri Pointe delivered 1,217 homes during the quarter at an average sales price of $672,000, compared to 1,619 homes at $688,000 in the third quarter of 2024. The company’s adjusted homebuilding gross margin was 21.6%, excluding inventory-related charges of $8.3 million, down from 23.3% a year earlier.
"Tri Pointe once again exceeded the high end of our delivery range, closing 1,217 homes at an average sales price of $672,000, and generating $817.3 million in home sales revenue for the third quarter," said Doug Bauer, Tri Pointe Homes Chief Executive Officer. "Our team delivered these results through disciplined execution and focus amid continued softness in housing demand."
Net new home orders decreased 20.5% YoY to 995 homes, while the company’s backlog stood at 1,298 homes valued at $1.01 billion, down from 2,325 homes valued at $1.73 billion a year earlier. The company maintained a strong financial position with total liquidity of $1.6 billion and a homebuilding debt-to-capital ratio of 25.1%.
For the fourth quarter, Tri Pointe expects to deliver between 1,200 and 1,400 homes at an average sales price between $690,000 and $700,000, with homebuilding gross margin percentage projected at 19.5% to 20.5%.
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