M/I Homes Q3 revenue misses estimates on lower contract volume

Overview

• M/I Homes Q3 revenue declined 1% to $1.1 bln, missing analyst expectations

• Company delivered a record 2,296 homes in Q3, despite challenging market conditions

• M/I Homes repurchased $50 mln of common stock and received a credit rating upgrade

Outlook

• Company notes market conditions remain volatile but is confident in housing industry fundamentals

• M/I Homes highlights strong financial position with credit rating upgrade and facility extension

Result Drivers

• RECORD HOME DELIVERIES - Delivered a record 2,296 homes despite challenging market conditions

• DECREASED NEW CONTRACTS - New contracts fell 6% to 1,908 compared to last year's third quarter

• BACKLOG DECLINE - Backlog units decreased 31% with a 30% drop in sales value

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy."

• Wall Street's median 12-month price target for M/I Homes Inc is $151.00, about 7.1% above its October 21 closing price of $140.30

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nPn7YfvXKa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)