Tri Pointe Homes (TPH) Reports Strong Q4 Performance

Tri Pointe Homes, Inc. has reported its fourth-quarter and full-year results for 2023, showing a remarkable performance in various operational and financial aspects. The company's fourth-quarter highlights include a significant increase in net new home orders, backlog units, and active selling communities. Tri Pointe Homes' homebuilding gross margin percentage for the quarter stood at 22.9%, with diluted earnings per share of $1.36.

Doug Bauer, Chief Executive Officer of Tri Pointe Homes, expressed satisfaction with the company's performance, stating, "2023 proved to be another strong year for Tri Pointe Homes, capped off by a successful fourth quarter." He also highlighted the company's strong finish, marked by a 143% increase in net new home orders for the quarter and a 40% increase for the full year, along with a 14% increase in active selling communities.

Tom Mitchell, President and Chief Operating Officer, emphasized the positive outlook for the housing market, citing factors such as household formations, strong demand from millennial and gen-z buyers, a more normalized supply chain, and shorter cycle times. Mitchell also noted the company's focus on growth, highlighting plans to expand into new markets and return capital to stockholders through share repurchases.

In terms of financial performance, Tri Pointe Homes reported a decrease in home sales revenue for the quarter, attributed to a decrease in new home deliveries and average sales price. The company's homebuilding gross margin percentage decreased to 22.9% from 25.0% in the fourth quarter of 2022, with adjusted homebuilding gross margin percentage at 26.5%. Additionally, the company saw an increase in net new home orders, active selling communities, and backlog units.

Looking ahead, the company provided its outlook for the first quarter of 2024, anticipating delivering between 1,200 and 1,400 homes at an average sales price between $645,000 and $655,000. For the full year of 2024, Tri Pointe Homes expects to deliver between 6,000 and 6,300 homes at a similar average sales price range. The company also outlined expectations for its homebuilding gross margin percentage and SG&A expenses for both the first quarter and the full year of 2024.

Tri Pointe Homes' shares have experienced a 1.0% decrease, with the current trading price at $34.42.

The company's full 8-K submission is available here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.