M/I Homes (NYSE: MHO) saw its stock plummet 5.20% in pre-market trading on Wednesday following the release of its 2025 third-quarter earnings report. The homebuilder's results fell short of analyst expectations, signaling potential challenges in the housing market.
The company reported earnings per share (EPS) of $3.92, missing the analyst consensus estimate of $4.37 by 10.19%. This represents a significant 23.14% decrease from the $5.10 per share earned in the same period last year. Revenue for the quarter came in at $1.13 billion, falling short of the expected $1.16 billion and marking a 1% decline from the previous year.
Despite delivering a record 2,296 homes for the third quarter, up 1% year-over-year, M/I Homes faced headwinds in other key areas. New contracts decreased by 6% to 1,908 compared to the same quarter last year, while the backlog units saw a substantial 31% drop. These indicators suggest a potential slowdown in future sales and revenue growth. Additionally, net income fell to $106.5 million from $145 million in the prior year, further contributing to investor concerns about the company's near-term prospects in a challenging housing market environment.
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