M/I Homes Q3 revenue falls on weaker demand

M/I Homes

Yesterday 12:37

Overview
U.S. homebuilder's Q3 revenue declined 5% amid weaker demand and higher mortgage rates
Adjusted diluted EPS for Q3 fell to $2.70 from $4.14 a year ago
Company repurchased $50 mln of common stock in Q3

Outlook
Company cites higher mortgage rates, weaker demand and economic uncertainty as current market conditions
M/I Homes says it is well positioned to manage through the current cycle due to strong balance sheet

Result Drivers
HIGHER MORTGAGE RATES - Co said increased mortgage rates contributed to weaker demand in Q3
WEAKER DEMAND - CEO said demand declined in Q3 due to economic uncertainty and higher rates
INVENTORY CHARGES - Co recorded $4.7 mln in pre-tax inventory charges in Q3, impacting profitability

Company press release: ID:nPn2MZLNFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
 
$67 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "hold."
Wall Street's median 12-month price target for M/I Homes Inc is $172.00, about 38.6% above its October 20 closing price of $124.06
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 19 - US homebuilder sentiment tumbles to near 14-1/2-year low in October
Oct 20 - US pending home sales tumble to record low in September

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)