NYSE$TPH

Tri Pointe Homes Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Tri Pointe Homes reported strong Q4 2020 results driven by order growth, margin expansion and backlog increase.

Tri Pointe Homes reported a strong fourth quarter of 2020, with a 14% year-over-year increase in net new home orders, a 130 basis point expansion in homebuilding gross margin to 23.2%, and a 69% increase in unit backlog compared to the previous year. The company's total liquidity stood at $1.2 billion, including $621 million in cash.

  • Diluted earnings per share were $0.92.
  • Homebuilding gross margin percentage was 23.2%.
  • Net new home orders increased by 14% year-over-year.
  • Backlog dollar value reached $1.9 billion, up 69% year-over-year.

Headline financials

Total Revenue

$1.06B

Previous: $1.14B-7.1%
EPS (adj)

$0.92

Previous: $0.85+8.2%
Avg Sales Price Delivered

$640K

Previous: $634K+0.9%
Avg Backlog Sales Price

$647K

Previous: $648K-0.2%
Capital Expenditures

$6.02M

Previous: $7.89M-23.8%
Free Cash Flow

$244M

Previous: $402M-39.4%
Net Income

$115M

Previous: $118M-2.4%
Operating Income

$149M

Previous: $145M+2.2%
Gross Profit

$254M

Previous: $249M+1.7%
Cash & Equivalents

$621M

Previous: $329M+88.8%
Total Assets

$4.02B

Previous: $3.86B+4.2%
Stock-Based Comp

$6M

Previous: $4.19M+43.1%

Revenue & EPS history

Tri Pointe · Revenue · Quarterly

$1.06B

Q4 2020-7.1%vs Q4 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 December 31, 2020, current market dynamics and management’s estimates. Actual results could differ due to, among other things, the effects of the COVID-19 pandemic.

Tailwinds

  • The Company anticipates delivering between 1,100 and 1,200 homes at an average sales price between $625,000 and $635,000 for the first quarter of 2021.
  • The Company expects its homebuilding gross margin percentage to be in the range of 21.5% to 22.5% for the first quarter of 2021.
  • The Company expects its effective tax rate for the first quarter of 2021 to be approximately 25%.
  • For the full year, the Company expects to open approximately 70 new communities and end the year with between 125 and 135 active selling communities.
  • The Company anticipates delivering between 5,700 and 6,000 homes at an average sales price between $600,000 and $610,000 for the full year.

Headwinds

  • There remains uncertainty regarding COVID-19 and future developments, including the duration and severity of the outbreak, as well as the related short-term and long-term impacts on the economy.
  • Actual results could differ due to, among other things, the effects of the COVID-19 pandemic.
  • The Company expects homebuilding gross margin percentage to be in the range of 21.0% to 22.0% for the full year.
  • The Company anticipates its SG&A expense as a percentage of homes sales revenue will be in the range of 10.0% to 10.5% for the full year.
  • Finally, the Company expects its effective tax rate for the full year to be approximately 25%.

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 Q4 2020

Historical avgQ4 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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