Tri Pointe Homes (NYSE:TPH) Issues Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Key Points

• Tri Pointe Homes reported earnings of $0.64 per share for the quarter, significantly exceeding the consensus estimate of $0.51 by $0.13, while revenue totaled $836.87 million, surpassing expectations of $782.22 million.
• The company announced a stock repurchase program, allowing for the buyback of up to $50 million worth of shares, indicating management's belief that the stock is undervalued.
• Despite the positive earnings report, Tri Pointe's revenue was down 26.6% year-over-year, with analysts offering mixed ratings and price targets for the stock.

Tri Pointe Homes (NYSE:TPH - Get Free Report) announced its earnings results on Thursday. The construction company reported $0.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.20, Zacks reports. Tri Pointe Homes had a return on equity of 11.33% and a net margin of 9.22%.The business had revenue of $836.87 million during the quarter, compared to analyst estimates of $782.22 million. During the same quarter in the previous year, the business earned $1.18 earnings per share. The company's revenue for the quarter was down 26.6% compared to the same quarter last year.

Tri Pointe Homes Stock Performance

NYSE:TPH traded up $0.65 during mid-day trading on Thursday, hitting $33.50. The company's stock had a trading volume of 929,750 shares, compared to its average volume of 1,015,280. Tri Pointe Homes has a 1 year low of $27.90 and a 1 year high of $45.28. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.79 and a quick ratio of 1.79. The stock has a market cap of $3.04 billion, a price-to-earnings ratio of 8.52, a PEG ratio of 0.89 and a beta of 1.30. The business's fifty day moving average is $34.21 and its two-hundred day moving average is $32.36.

Tri Pointe Homes announced that its board has approved a stock repurchase plan on Thursday, July 24th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the construction company to repurchase up to 1.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Institutional Investors Weigh In On Tri Pointe Homes

Hedge funds have recently modified their holdings of the company. EverSource Wealth Advisors LLC boosted its stake in shares of Tri Pointe Homes by 104.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,157 shares of the construction company's stock worth $69,000 after acquiring an additional 1,100 shares in the last quarter. Corient Private Wealth LLC acquired a new stake in Tri Pointe Homes in the 2nd quarter valued at about $202,000. Gamco Investors INC. ET AL acquired a new stake in Tri Pointe Homes in the 2nd quarter valued at about $224,000. Occudo Quantitative Strategies LP acquired a new stake in Tri Pointe Homes in the 2nd quarter valued at about $226,000. Finally, Tower Research Capital LLC TRC raised its holdings in Tri Pointe Homes by 388.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,884 shares of the construction company's stock valued at $284,000 after acquiring an additional 7,065 shares during the last quarter. 97.01% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

TPH has been the subject of several research analyst reports. Wedbush reaffirmed an "outperform" rating and set a $43.00 price target on shares of Tri Pointe Homes in a research note on Friday, July 25th. Evercore ISI reissued an "in-line" rating and issued a $34.00 price objective (down previously from $38.00) on shares of Tri Pointe Homes in a research note on Tuesday, October 7th. Wall Street Zen raised Tri Pointe Homes from a "sell" rating to a "hold" rating in a research report on Saturday, August 30th. Weiss Ratings reissued a "hold (c+)" rating on shares of Tri Pointe Homes in a report on Wednesday, October 8th. Finally, Wolfe Research lowered shares of Tri Pointe Homes from an "outperform" rating to a "peer perform" rating in a report on Sunday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, Tri Pointe Homes presently has an average rating of "Moderate Buy" and an average target price of $39.25.

Tri Pointe Homes Company Profile

Tri Pointe Homes, Inc engages in the design, construction, and sale of single-family attached and detached homes in the United States. The company operates through a portfolio of six regional home building brands comprising Maracay in Arizona; Pardee Homes in California and Nevada; Quadrant Homes in Washington; Trendmaker Homes in Texas; TRI Pointe Homes in California, Colorado, and the Carolinas; and Winchester Homes in Maryland and Northern Virginia.