NYSE$TPH

Tri Pointe Homes Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Tri Pointe Homes delivered strong profitability, with increased home sales revenue, homebuilding gross margin, and SG&A leverage.

Tri Pointe Homes reported a strong third quarter in 2022, with a net income available to common stockholders of $149 million, or $1.45 in diluted earnings per share. The company's performance was driven by improvements in home sales revenue, homebuilding gross margin, and SG&A leverage. Despite a weakening housing market, Tri Pointe Homes is focused on closing homes in backlog, generating cash, and maintaining price competitiveness.

  • Net income available to common stockholders was $149.2 million, or $1.45 per diluted share.
  • Home sales revenue increased to $1.1 billion, up 3% compared to the same quarter last year.
  • Homebuilding gross margin percentage increased to 27.1%.
  • Backlog dollar value remained flat at $2.4 billion.

Headline financials

Total Revenue

$1.07B

Previous: $1.03B+3.7%
EPS (adj)

$1.45

Previous: $1.17+23.9%
Avg Sales Price Delivered

$723K

Previous: $630K+14.8%
Avg Backlog Sales Price

$797K

Previous: $671K+18.8%
Capital Expenditures

-$37.7M

Previous: -$19.5M-93.9%
Free Cash Flow

$113M

Previous: $114M-0.8%
Net Income

$151M

Previous: $133M+13.1%
Operating Income

$191M

Previous: $172M+11.0%
Gross Profit

-$3.28M

Previous: -$268K-1122.8%
Cash & Equivalents

$228M

Previous: $587M-61.2%
Total Assets

$4.53B

Previous: $4.23B+6.9%
Stock-Based Comp

$5.72M

Previous: $4.41M+29.6%

Revenue & EPS history

Tri Pointe · Revenue · Quarterly

$1.07B

Q3 2022+3.7%vs Q3 2021
Beat estimate in 15 of 15 quarters(100%)
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

For the fourth quarter, the Company anticipates delivering between 1,700 and 1,900 homes at an average sales price between $700,000 and $715,000. The Company expects homebuilding gross margin percentage to be in the range of 25.0% to 26.0% for the fourth quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 8.0% to 9.0%. Finally, the Company expects its effective tax rate for the fourth quarter to be in the range of 24.0% to 25.0%.

Tailwinds

  • Deliveries between 1,700 and 1,900 homes
  • Average sales price between $700,000 and $715,000
  • Homebuilding gross margin percentage to be in the range of 25.0% to 26.0%
  • SG&A expense as a percentage of home sales revenue will be in the range of 8.0% to 9.0%.
  • Effective tax rate for the fourth quarter to be in the range of 24.0% to 25.0%.

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 Q3 2022

Historical avgQ3 2022

+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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