Century Communities Stock Price Increases on Q4 Earnings Beat

Century Communities, Inc. CCS reported mixed results in fourth-quarter 2024, wherein earnings topped the Zacks Consensus Estimate but revenues missed the same. Nonetheless, both metrics registered improvements on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company's fourth-quarter performance marked a record in home deliveries. For the year, the company achieved a notable rise in home deliveries compared with the prior year. Additionally, net new home contracts saw substantial year-over-year growth. Owing to the growth in lot and community count in 2024, CCS remains optimistic about the 2025 outlook, wherein it expects the total home deliveries and home sales revenues to increase on a year-over-year basis.Shares of this homebuilding company moved up 3% in yesterday’s after-market trading session.Inside the Headlines of CCSThe company reported quarterly adjusted earnings per share (EPS) of $3.49, which topped the Zacks Consensus Estimate for earnings of $3.21 by 8.7%. The metric grew 19.1% year over year from an EPS of $2.93.Century Communities, Inc. Price, Consensus and EPS Surprise  Century Communities, Inc. price-consensus-eps-surprise-chart | Century Communities, Inc. QuoteTotal revenues of $1.27 billion missed the consensus mark of $1.30 billion by 1.7%, but increased 5.6% year over year from $1.21 billion.The quarter’s adjusted EBITDA increased 17.3% to $172.6 million from the year-ago quarter.CCS’ Segmental DetailsHomebuilding: The segment's revenues of $1.25 billion increased 4.9% from the year-ago quarter’s level of $1.19 billion. The number of homes delivered was a quarterly record of 3,198 units, up 1.3% from the year-ago period’s levels. The average selling price (“ASP”) also increased 3.8% from a year ago to $389,800.Net new home contracts grew 5.4% to 2,467 units from the prior year’s reported value of 2,340 units. Quarter-end backlog totaled 850 homes, down 20.6% from the year-ago figure. Further, potential housing revenues from backlog declined 12.4% from the prior-year period to $351.2 million. On the other hand, the backlog ASP inched up 10.3% year over year to $413,100.As of Dec. 31, 2024, the selling community count was 322, up 28.3% from the year-ago period’s value of 251.Within homebuilding, the adjusted homebuilding gross margin (excluding interest and inventory impairment) contracted 10 bps year over year to 22.9%. Selling, general and administrative expenses, as a percentage of housing revenues, increased 40 bps from the year-ago figure to 11.5%.Total lot inventory as of Dec. 31, 2024, increased 9.4% to 80,632 of which 35,756 was owned and 44,876 was controlled.Financial Services: The segment's revenues increased 59.3% year over year to $26.2 million. Pretax income was $7.9 million in the reported quarter.2024 Highlights of CCSTotal revenues were $4.4 billion, up 19.1% from $3.69 billion reported in the prior year. Homebuilding revenues were $4.31 billion, up from $3.61 billion reported in 2023. Earnings were $11.06 per share, up from $8.09 reported in 2023.Total homes delivered were 11,007 units in fiscal 2024, up 3.8% from 9,568 units in 2023. Adjusted homebuilding gross margin (excluding interest and inventory impairment) was 23.3%, up 80 bps from 22.5% reported in 2023.CCS’ Financial PositionCentury Communities had cash and cash equivalents of $150 million as of Dec. 31, 2024, down from $226.2 million in 2023 end. The company had a total liquidity of $917.5 million, including $153 million of cash.As of the end of 2024, the net homebuilding debt-to-capital ratio was 30.3%, up from 22.4% in 2023 end.CCS’ 2025 OutlookFor the year, CCS expects home deliveries to be between 11,700 homes and 12,400 homes. The home sales revenues are expected between $4.5 billion and $4.8 billion.CCS’ Zacks Rank & Recent Peer ReleasesCentury Communities currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.KB Home KBH reported impressive fiscal fourth-quarter 2024 results, wherein revenues and earnings surpassed expectations. On a year-over-year basis, both metrics increased, highlighting its resilience in a fluctuating housing market.KB Home is optimistic about fiscal 2025. However, challenges such as mortgage rate headwinds and potential regulatory shifts could temper the pace of growth. Still, the company’s robust investments in land and its “Built to Order” model provide a cushion against market uncertainties.D.R. Horton, Inc. DHI posted first-quarter fiscal 2025 (ended Dec. 31, 2024) results, with earnings and revenues beating Zacks Consensus Estimate but decreasing on a year-over-year basis.Despite rising home inventories, the supply of affordable homes remains constrained, while favorable demographics continue to drive housing demand. To address affordability challenges and stimulate sales, the company leveraged incentives such as mortgage rate buydowns. Additionally, D.R. Horton focused on offering smaller, affordable floor plans to align with the needs of cost-conscious homebuyers.NVR, Inc. NVR reported impressive fourth-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. Both metrics increased on a year-over-year basis.The quarterly performance showed strong growth in settlements. Although new orders decreased in the quarter, the average selling price increased.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KB Home (KBH): Free Stock Analysis Report D.R. Horton, Inc. (DHI): Free Stock Analysis Report Century Communities, Inc. (CCS): Free Stock Analysis Report NVR, Inc. (NVR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks