Shares of Green Brick Partners (NYSE: GRBK) surged 8.57% in after-hours trading on Wednesday following the release of its impressive third-quarter earnings report. The homebuilder significantly outperformed analyst expectations, demonstrating resilience in a challenging housing market.
Green Brick reported quarterly earnings of $1.77 per share, handily beating the analyst consensus estimate of $1.44 by 22.92%. While this represents a 10.61% decrease from the same period last year, it still showcases the company's ability to maintain strong profitability. Revenue for the quarter came in at $499.091 million, surpassing the expected $458.779 million by 8.79%, despite a 4.69% year-over-year decline.
The company's performance was particularly noteworthy given the current high-interest rate environment and affordability pressures in the housing market. Green Brick achieved record third-quarter net new home orders, up 2.4% year-over-year to 898 units. This growth is attributed to the company's infill-focused land self-development strategy and strategic adjustments in pricing and incentives. Additionally, Green Brick maintained a homebuilding gross margin above 30% for the tenth consecutive quarter, reflecting effective cost management and pricing strategies. These strong results, coupled with the company's positive outlook, including plans to open sales for a new Houston community in spring 2026, likely contributed to the significant after-hours stock price appreciation.
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