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, which fell short of analyst expectations. The homebuilder's financial results revealed a decline in revenue and a significant drop in net income, raising concerns among investors about the company's performance in a challenging market environment.
The company reported earnings per share (EPS) of $3.92 for the quarter, missing the analyst consensus estimate of $4.37 by 10.19%. This represents a 23.14% decrease from the $5.10 per share reported in the same period last year. Revenue for the quarter came in at $1.13 billion, down 1% year-over-year and falling short of the expected $1.15 billion. Net income declined to $106.5 million from $145 million in the previous year's quarter.
Despite delivering a record 2,296 homes for a third quarter, up 1% from the previous year, M/I Homes faced headwinds in new contracts and backlog. New contracts fell 6% to 1,908 compared to last year's third quarter, while the backlog units decreased 31% with a 30% drop in sales value. The company noted that market conditions remain volatile, although it expressed confidence in the housing industry fundamentals. M/I Homes also highlighted its strong financial position, mentioning a credit rating upgrade from Moody's to Ba1 and the repurchase of $50 million of common stock during the quarter.
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