NYSE$TPH

Tri Pointe Homes Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

TRI Pointe Group's Q2 2020 results were announced, featuring a rebound from the COVID-19 pandemic, double-digit revenue growth, margin expansion, and improved order trends.

TRI Pointe Group reported a strong second quarter with a significant rebound from the initial impact of the COVID-19 pandemic. Net income increased by 115% year-over-year, driven by double-digit revenue growth and significant margin expansion. The company saw improving order trends throughout the quarter, culminating in a 28% year-over-year increase in net new home orders in June.

  • Net new home orders in June increased by 28% year-over-year, including a 36% increase in California.
  • Backlog dollar value at quarter-end rose by 17% year-over-year to $1.7 billion.
  • Homebuilding gross margin percentage increased to 21.6%, up from 17.0% in the prior year.
  • Diluted earnings per share reached $0.43, a 115% improvement over the prior-year period.

Headline financials

Total Revenue

$770M

Previous: $699M+10.2%
EPS (adj)

$0.51

Previous: $0.18+183.3%
Avg Sales Price Delivered

$624K

No prior period
Avg Backlog Sales Price

$656K

No prior period
Capital Expenditures

-$12M

Previous: -$13.1M+8.7%
Free Cash Flow

$44.5M

Previous: $13.1M+239.4%
Net Income

$56.5M

Previous: $26.3M+115.2%
Operating Income

$77.1M

Previous: $33.2M+132.4%
Gross Profit

$769M

Previous: $698M+10.1%
Cash & Equivalents

$475M

Previous: $172M+176.7%
Total Assets

$3.98B

Previous: $3.88B+2.6%
Stock-Based Comp

$3.79M

Previous: $3.35M+13.0%

Revenue & EPS history

Tri Pointe · Revenue · Quarterly

$770M

Q2 2020+10.2%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Tri Pointe · $7.88M total across 2 segments · Q2 2023

  • Land and Lot Sales
    $7.09M
  • Other Operations
    $796K

Forward guidance

The following outlook is based on the Company’s backlog as of June 30, 2020, current market dynamics and management’s estimates. For the third quarter of 2020, the Company anticipates delivering between 1,100 and 1,200 homes at an average sales price between $620,000 and $630,000.

Tailwinds

  • The Company anticipates delivering between 1,100 and 1,200 homes
  • The Company anticipates average sales price between $620,000 and $630,000
  • The Company expects its homebuilding gross margin percentage will be in the range of 20.0% to 21.0%
  • The Company anticipates its SG&A expense as a percentage of homes sales revenue will be in the range of 10.2% to 10.7%
  • The Company expects its effective tax rate for the third quarter of 2020 will be in the range of 25% to 26%

Headwinds

  • Significant uncertainty regarding COVID-19 and future developments
  • The duration and severity of the outbreak
  • The related short-term and long-term impacts on the economy
  • Disruptions to the economy that may result from the pandemic
  • Actual results could differ

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.4%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

55%

32 / 58 earnings

Positive

+13.2%

Q3 2012

Best reaction

-10.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-0.2%
Q4 2025-0.0%+0.1%+0.7%
Q3 2025+1.9%-1.0%-0.6%
Q2 2025-10.0%-11.1%+2.7%
Q1 2025+0.1%-2.5%-3.3%
Q4 2024-10.9%-15.0%-11.7%
Q3 2024-5.2%-4.0%+0.3%
Q2 2024+1.6%+1.7%+1.1%
Q1 2024+4.7%+1.9%+5.9%
Q4 2023+2.1%+2.4%+5.3%
Q3 2023-0.7%+1.8%+18.7%
Q2 2023-4.6%-1.6%-10.4%
Q1 2023+10.1%+8.8%+11.8%
Q4 2022+4.1%+5.4%+9.8%
Q3 2022+3.7%+2.8%+10.3%
Q2 2022-0.8%-7.4%-6.5%
Q1 2022-8.5%-6.5%-3.8%
Q4 2021-7.5%-9.9%-0.9%
Q3 2021+2.6%+1.7%+8.5%
Q2 2021+8.9%+12.2%+12.8%
Q1 2021+1.7%+6.6%+3.9%
Q4 2020-3.2%-2.5%+1.4%
Q3 2020-1.1%-7.1%-3.0%
Q2 2020+3.9%+0.2%+7.2%
Q1 2020+6.7%+18.1%+42.1%
Q4 2019+3.1%+5.0%-60.3%
Q3 2019+1.7%-1.1%+0.1%
Q2 2019+6.0%+9.0%+6.6%
Q1 2019-7.8%-8.6%-7.6%
Q4 2018-1.7%-5.2%-1.7%
Q3 2018+0.6%-0.8%+13.0%
Q2 2018-9.2%-8.5%-6.8%
Q1 2018+5.2%+5.4%+8.7%
Q4 2017-2.2%-7.7%-7.7%
Q3 2017+9.0%+11.6%+15.9%
Q2 2017-2.9%-5.5%-9.1%
Q1 2017+2.7%+0.7%+1.3%
Q4 2016-0.5%-0.6%+3.5%
Q3 2016-9.0%-11.3%-0.9%
Q2 2016+3.7%+0.6%+2.3%
Q1 2016-5.3%
Q4 2015+0.5%
Q3 2015+2.8%
Q2 2015+0.1%
Q1 2015-1.3%
Q4 2014-5.0%
Q3 2014+5.1%
Q2 2014-1.2%
Q1 2014-2.6%
Q4 2013-0.9%
Q4 2011-0.9%
Q3 2013+13.2%
Q3 2012+13.2%
Q2 2012+1.9%
Q2 2013+1.9%
Q1 2012+1.5%
Q4 2012+1.5%
Q1 2013+1.4%
Q4 2010

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