Wrapping up Q2 earnings, we look at the numbers and key takeaways for the home builders stocks, including Tri Pointe Homes (NYSE: TPH) and its peers.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 12 home builders stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 4.1%.

Luckily, home builders stocks have performed well with share prices up 14.5% on average since the latest earnings results.

Tri Pointe Homes (NYSE: TPH)

Established in 2009 in California, Tri Pointe Homes (NYSE: TPH) is a United States homebuilder recognized for its innovative and sustainable approach to creating premium, life-enhancing homes.

Tri Pointe Homes reported revenues of $902.4 million, down 21.9% year on year. This print exceeded analysts’ expectations by 10%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ backlog estimates.

“Tri Pointe Homes delivered another solid quarter, meeting our revenue and earnings guidance despite ongoing macroeconomic headwinds,” said Doug Bauer, Tri Pointe Homes Chief Executive Officer.

Tri Pointe Homes scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 1.5% since reporting and currently trades at $35.70.

Is now the time to buy Tri Pointe Homes? Access our full analysis of the earnings results here, it’s free.

Best Q2: Champion Homes (NYSE: SKY)

Founded in 1951, Champion Homes (NYSE: SKY) is a manufacturer of modular homes and buildings in North America.

Champion Homes reported revenues of $701.3 million, up 11.7% year on year, outperforming analysts’ expectations by 9.2%. The business had an incredible quarter with an impressive beat of analysts’ sales volume estimates and a beat of analysts’ EPS estimates.

Champion Homes scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $74.54.

Is now the time to buy Champion Homes? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Lennar (NYSE: LEN)

One of the largest homebuilders in America, Lennar (NYSE: LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.

Lennar reported revenues of $8.38 billion, down 4.4% year on year, exceeding analysts’ expectations by 1.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 26.1% since the results and currently trades at $137.98.

Read our full analysis of Lennar’s results here.

Taylor Morrison Home (NYSE: TMHC)

Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE: TMHC) builds single family homes and communities across the United States.

Taylor Morrison Home reported revenues of $2.03 billion, up 2% year on year. This print beat analysts’ expectations by 3.9%. Zooming out, it was a satisfactory quarter as it also produced a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ backlog estimates.

The stock is up 4.1% since reporting and currently trades at $69.50.

Read our full, actionable report on Taylor Morrison Home here, it’s free.

TopBuild (NYSE: BLD)

Established in 2015 following a spinoff from Masco Corporation, TopBuild (NYSE: BLD) is a distributor and installer of insulation and other building products.

TopBuild reported revenues of $1.30 billion, down 5% year on year. This result met analysts’ expectations. Overall, it was a strong quarter as it also logged full-year EBITDA guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

TopBuild had the weakest performance against analyst estimates among its peers. The stock is up 8.6% since reporting and currently trades at $420.65.

Read our full, actionable report on TopBuild here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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