Tri Pointe Homes stock surges nearly 7% on Q4 earnings beat

Published 18/02/2025, 12:13
Updated 18/02/2025, 12:20
Tri Pointe Homes stock surges nearly 7% on Q4 earnings beat

INCLINE VILLAGE, Nev. -On Tuesday, Tri Pointe Homes , Inc. (NYSE: NYSE:TPH) shares jumped 6.76% after the homebuilder reported fourth quarter earnings that exceeded analyst expectations, despite a slight revenue miss.

The company posted adjusted earnings per share of $1.37, surpassing the consensus estimate of $1.29. Revenue came in at $1.2 billion, just shy of the $1.22 billion analysts had projected.

Tri Pointe delivered 1,748 homes in Q4, generating $1.2 billion in home sales revenue. The company's homebuilding gross margin improved 40 basis points YoY to 23.3%, while SG&A expenses as a percentage of home sales revenue were 10.3%.

"Tri Pointe Homes delivered strong fourth quarter results, capping off another exceptional year for our company," said CEO Doug Bauer. He noted that the company achieved several milestones in 2024, including record home deliveries and a 40% increase in diluted EPS YoY.

For Q1 2025, Tri Pointe expects to deliver between 900 and 1,100 homes at an average sales price of $685,000 to $695,000. The company projects a homebuilding gross margin of 22.0% to 23.0% and SG&A expenses of 15.0% to 16.0% of home sales revenue.

Looking ahead to full-year 2025, Tri Pointe anticipates delivering 5,500 to 6,100 homes at an average price of $660,000 to $670,000. The company forecasts a homebuilding gross margin of 20.5% to 22.0% and SG&A expenses of 11.0% to 12.0% of home sales revenue.

While acknowledging softer seasonal sales in late 2024 due to elevated mortgage rates, President Tom Mitchell expressed optimism for the spring selling season, citing strong long-term fundamentals in the housing market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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