Tri Pointe Homes Q4 revenue falls 23% on decline in home sales

Overview

• U.S. homebuilder's Q4 home sales revenue fell 23% yr/yr

• Adjusted EPS for Q4 beat analyst expectations

• Company to be acquired by Sumitomo Forestry, pending approvals

Outlook

• Company did not provide specific guidance for future quarters or years

Result Drivers

• DECLINE IN HOME SALES - Home sales revenue fell 23% due to a decrease in new home deliveries and a slight drop in average sales price

• GROSS MARGIN PRESSURE - Homebuilding gross margin percentage decreased to 19.3% from 23.3%, impacted by inventory-related charges

• ADJUSTED EPS BEAT - Despite challenges, adjusted EPS beat analyst expectations, indicating effective cost management

Company press release: ID:nGNX9kncN5

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "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 Tri Pointe Homes Inc (Delaware) is $36.00, about 22.4% below its February 24 closing price of $46.37

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 13 three months ago

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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.)