NYSE$CCS

Century Communities Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported solid results with record home sales revenues and strong operating cash flow.

Century Communities reported fourth-quarter results with total revenues of $1.2 billion. Net income was $79.5 million, or $2.47 per diluted share. The company delivered 2,903 homes and reduced its net leverage ratio to 23.5%.

  • Net income was $79.5 million, or $2.47 per diluted share.
  • Adjusted net income was $87.3 million, or $2.71 per diluted share.
  • Total revenues were $1.2 billion.
  • Deliveries totaled 2,903 homes.

Headline financials

Total Revenue

$1.18B

Previous: $1.21B-2.3%
EPS (adj)

$2.71

Previous: $4.78-43.3%
Total Residential Units Delivered

2.9K

Previous: 2.9K-0.4%
Net New Home Contracts

1.3K

Previous: 2.7K-53.4%
Homebuilding Debt to Capital

32.0%

No prior period
Net Homebuilding Debt to Net Capital

23.5%

No prior period
Capital Expenditures

$5.01M

Previous: $4.81M+4.1%
Free Cash Flow

$377M

Previous: -$289M+230.7%
Net Income

$79.5M

Previous: $165M-51.8%
Operating Income

$102M

Previous: $212M-51.7%
Gross Profit

$202M

Previous: $299M-32.3%
Cash & Equivalents

$297M

Previous: $316M-6.2%
Total Assets

$3.77B

Previous: $3.5B+7.9%
Stock-Based Comp

$5.1M

Previous: $3.62M+41.0%

Revenue & EPS history

Century Communities · Revenue · Quarterly

$1.18B

Q4 2022-2.3%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Century Communities · $843M total across 2 segments · Q2 2023

  • Home Sales Revenues
    $818M-27.9%
  • Financial Services Revenues
    $24.3M+6.6%

Forward guidance

For the full year 2023, the company expects home deliveries to be in the range of 7,000 to 8,000 homes and home sales revenues to be in the range of $2.6 billion to $3.1 billion.

Tailwinds

  • Mortgage rates are stabilizing.
  • Input costs are receding.
  • Homebuyer traffic on sites is increasing.
  • Spec-based model and focus on entry-level homes positions the company well.
  • Flexibility of operating model allows reduction of controlled lot inventory and land spend commitments.

Headwinds

  • High degree of uncertainty in the homebuilding industry.
  • High degree of uncertainty in the economy in general.
  • Higher interest rates have weighed on new home sales.
  • Overall economic uncertainty have weighed on new home sales.
  • Higher direct construction costs weighed on margins.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+2.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

65%

31 / 48 earnings

Positive

+20.9%

Q4 2020

Best reaction

-9.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.7%-7.4%-18.6%
Q4 2025-0.2%+2.6%+5.1%
Q3 2025+7.2%+5.0%+0.5%
Q2 2025+0.2%-2.6%+3.2%
Q1 2025-6.1%-10.3%-11.7%
Q4 2024+4.8%+2.4%-6.9%
Q3 2024+1.5%-1.3%-4.1%
Q2 2024+0.4%+3.5%+4.5%
Q1 2024-6.5%-3.9%+0.1%
Q4 2023+5.2%+1.4%-1.5%
Q3 2023+3.2%+3.3%+21.2%
Q2 2023+3.0%+3.0%-5.0%
Q1 2023+0.2%-0.5%-2.8%
Q4 2022+0.9%-1.3%-1.6%
Q3 2022-9.8%-5.7%+1.2%
Q2 2022-2.5%-2.4%-6.4%
Q1 2022+4.5%+5.2%+5.1%
Q4 2021-3.0%-6.9%-1.4%
Q3 2021+4.4%+5.2%+10.4%
Q2 2021+10.6%+14.5%+14.4%
Q1 2021+13.6%+14.5%+23.4%
Q4 2020+20.9%+22.7%+19.4%
Q3 2020-0.1%-1.8%+9.5%
Q2 2020+1.1%-4.0%+1.5%
Q1 2020+11.8%+10.7%+54.2%
Q4 2019+11.4%+18.6%+5.2%
Q3 2019-7.5%-8.0%-12.7%
Q2 2019+2.9%+1.5%+3.3%
Q1 2019+12.3%+11.0%+6.2%
Q4 2018-3.2%+3.8%+0.3%
Q3 2018+1.7%-5.3%-8.9%
Q2 2018-1.0%-5.2%-5.3%
Q1 2018-0.7%-0.2%-2.6%
Q4 2017+8.5%+12.3%+4.3%
Q3 2017+1.6%-1.6%+5.7%
Q2 2017-4.2%-7.7%-14.0%
Q1 2017-1.3%-0.4%-4.8%
Q4 2016+3.3%+1.8%+12.2%
Q3 2016-2.5%+0.8%+3.0%
Q2 2016+12.7%+14.3%+12.2%
Q1 2016+0.9%
Q4 2015+1.1%
Q3 2015-3.0%
Q2 2015+7.3%
Q1 2015+0.5%
Q4 2014+7.8%
Q3 2014-9.3%
Q2 2014+1.0%
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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