Earnings Review and Free Research Report: TRI Pointe’s Quarterly Revenue Surged 23.3%; EPS More than Doubled by 118.2%

Research Desk Line-up: Cavco Industries Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on TRI Pointe Group, Inc. (NYSE: TPH), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TPH, following the Company's reporting of its third quarter fiscal 2017 operating results on October 25, 2017. The homebuilder outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Residential Construction industry. Pro-TD has currently selected Cavco Industries, Inc. (NASDAQ: CVCO) for due-diligence and potential coverage as the Company announced on November 07, 2017, its financial results for Q2 FY18 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Cavco Industries when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TPH; also brushing on CVCO. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended September 30, 2017, TRI Pointe reported total revenue of $717.44 million compared to revenue of $581.79 million in Q3 2016. The Company's revenue exceeded analysts' expectations of $708.7 million.

During Q3 2017, TRI Pointe's net income available to common stockholders was $72.3 million, or $0.48 per diluted share, compared to net income available to common stockholders of $34.8 million, or $0.22 per diluted share, for Q3 2016. The increase in net income was primarily due to an increase in land and lot sales gross margin of $55.4 million. The Company's earnings beat Wall Street's expectation of $0.45 per share.

TRI Pointe's Segment Results

During Q3 2017, Home sales revenue advanced 12% to $648.6 million compared to $578.7 million for Q3 2016, primarily attributable to a 9% increase in new home deliveries to 1,111, and a 3% growth in the average sales price of homes delivered at $584,000 versus $568,000 in the year-ago comparable period.

For Q3 2017, new home orders increased 36% to 1,268 homes compared to 932 homes in Q3 2016. The Company's average selling communities increased 9% to 129.8 for Q3 2017 compared to 119.0 for Q3 2016. TRI Pointe's overall absorption rate per average selling community increased 27% for the reported quarter to 9.8 orders, or 3.3 monthly, compared to 7.8 orders, or 2.6 monthly, in the year-earlier same quarter.

TRI Pointe ended Q3 2017 with 2,265 homes in backlog, representing approximately $1.5 billion. The average sales price of homes in backlog as of September 30, 2017, jumped 18% to $654,000 compared to $555,000 as of September 30, 2016.

The Homebuilding's gross margin percentage decreased to 19.5% for Q3 2017 compared to 20.1% for Q3 2016. Excluding interest and impairments and lot option abandonments in cost of home sales, the Company's adjusted homebuilding gross margin percentage was 22.0% for the reported quarter compared to 22.7% for the year-earlier corresponding quarter. The decrease in homebuilding gross margin percentage was largely due to the mix of homes delivered and increased labor and material cost.

During Q3 2017, Land and lot sales revenue were $68.2 million compared to $2.5 million in Q3 2016. The segment's land and lot sales gross margin percentage were 82.4% compared to 31.6% in the year-ago same period.

The segment's Q3 2017 results included the sale of a parcel consisting of 69 homebuilding lots located in the Pacific Highlands Ranch community in San Diego, California, representing $66.8 million in land and lot sales revenue and $56.1 million in land and lot gross margin.

Cash Matters

TRI Pointe ended Q3 2017 with total liquidity of $554.6 million, including cash of $162.4 million and $392.2 million of availability under the Company's unsecured revolving credit facility. The Company's debt-to-capital and net debt-to-net capital ratio were 47.5% and 45.0%, respectively, as of September 30, 2017. During Q3 2017, TRI Pointe repurchased 975,700 shares of common stock at a weighted average price per share of $12.83 for an aggregate dollar amount of $12.52 million.

Outlook

For the fourth quarter of 2017, TRI Pointe is forecasting to open 14 new communities and close out 10, resulting in 131 active selling communities as of December 31, 2017. In addition, the Company anticipates delivering approximately 75% to 80% of its 2,265 units in backlog as of September 30, 2017, at an average sales price of $630,000 to $640,000.

TRI Pointe is anticipating its homebuilding gross margin percentage to be in a range of 21.0% to 22.0% for Q4 2017 resulting in a range of 20.0% to 21.0% for the full year.

Stock Performance

TRI Pointe's share price finished yesterday's trading session at $17.78, marginally sliding 0.17%. A total volume of 1.21 million shares have exchanged hands. The Company's stock price skyrocketed 35.83% in the last three months, 39.45% in the past six months, and 53.28% in the previous twelve months. Additionally, the stock soared 54.88% since the start of the year. Shares of the Company have a PE ratio of 16.19 and currently have a market cap of $2.64 billion.

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