M/I Homes Q4 Earnings Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Earnings Miss: M/I Homes reported a Q4 GAAP EPS of $2.39, missing expectations by $1.49, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth: Despite a 5% year-over-year decline to $1.15 billion, revenue exceeded market expectations by $40 million, demonstrating the company's resilience in challenging conditions.
- New Contracts Increase: New contracts rose by 9% to 1,921 homes, reflecting a rebound in market demand that may lay the groundwork for future revenue growth.
- Delivery Decline: Homes delivered decreased by 4% to 2,301, highlighting challenges in the production and delivery chain that could impact the company's market share and customer satisfaction.
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Analyst Views on MHO
Wall Street analysts forecast MHO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MHO is 168.33 USD with a low forecast of 155.00 USD and a high forecast of 185.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 132.360
Low
155.00
Averages
168.33
High
185.00
Current: 132.360
Low
155.00
Averages
168.33
High
185.00
About MHO
M/I Homes, Inc. is a homebuilder of single-family homes. The Company's operations include homebuilding and financial services. The Company's homebuilding operations include the Northern and Southern regions. It designs, markets, constructs and sells single-family homes and attached townhomes to first-time, move-up, empty-nester, and luxury buyers. Its homebuilding operations are also engaged in the sale of land and lots. The Company primarily constructs homes in planned development communities and mixed-use communities. It has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota, Fort Myers/Naples and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina, and Nashville, Tennessee. Its financial services operations provide mortgage loans and title services to the customers of its homebuilding operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
M/I Homes to Announce Q4 Earnings on January 28
- Earnings Announcement Schedule: M/I Homes is set to release its Q4 earnings on January 28 before market open, with a consensus EPS estimate of $3.88, reflecting a 17.6% year-over-year decline, indicating potential challenges the company faces.
- Revenue Expectations Decline: Analysts forecast that M/I Homes will generate $1.11 billion in revenue for Q4, an 8.3% year-over-year decrease, suggesting sales pressures in the current economic environment.
- Historical Performance: Over the past two years, M/I Homes has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating the company's stability in financial forecasting.
- Market Analysis Focus: Despite facing challenges, Seeking Alpha's Quant Rating maintains a focus on M/I Homes, indicating potential optimism in the market regarding its future performance.
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M/I Homes Reports Strong 2025 Earnings Amid Market Challenges
- Performance Highlights: M/I Homes delivered 8,921 homes in 2025 with revenue of $4.4 billion, demonstrating resilience in a challenging market despite a 20% decline in pre-tax income, indicating strong financial health.
- Margin Pressure: The gross margin for 2025 was 23.0%, and 24.4% excluding $59 million in inventory and warranty charges, reflecting a 220 basis point decline from 2024 due to rising incentives and lot costs impacting profitability.
- Sales Trends: New contracts increased by 9% year-over-year in Q4, with a 13% rise in the Southern Region, indicating a gradual recovery in market demand, although the share of first-time buyers decreased, highlighting ongoing challenges.
- Share Buybacks: The company repurchased $50 million in stock during Q4 and $200 million for the year, reflecting management's confidence in future growth while maintaining a strong balance sheet with $689 million in cash.
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