Shares of Green Brick Partners, Inc. (NYSE: GRBK) plummeted nearly 9% in pre-market trading on Wednesday, October 31, 2024, after the homebuilder reported weaker-than-expected third-quarter results and provided a cautious outlook for the housing market.
For the quarter ended September 30, 2024, Green Brick Partners reported revenue of $523.66 million, a 25% year-over-year increase but missing analysts' estimates of $541.67 million. The company's net income came in at $89.11 million, or $1.98 per diluted share, compared to $72.16 million, or $1.56 per share, in the prior-year quarter. However, earnings per share fell short of the consensus estimate of $2.07.
The company's homebuilding gross margin declined to 32.7% from 33.3% a year ago, reflecting higher construction costs and pricing pressure. While new home orders rose 11.3% to 877 units, the cancellation rate increased to 8.5% from 6.1% in the year-ago period, signaling softening demand amid ongoing challenges in the housing market.
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