HHH Earnings Prediction
The chart below shows how HHH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HHH sees a -1.12% change in stock price 10 days leading up to the earnings, and a -0.02% change 10 days following the report. On the earnings day itself, the stock moves by +0.25%. This data can give you a slight idea of what to expect for the next quarter's release.
HHH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
327.15M
43.19%
3.07%
Gross Margin
45.18%
24.15%
24.05%
Operating Margin
59.66%
216.33%
192.59%
Net Margin
29.51%
110.33%
345.10%
EPS
1.46
113.31%
247.62%
No Data Available
HHH Earnings Analysis
Howard Hughes Holdings Inc. Corporation (HHH.N) Earnings Conference Call
Positive
Record MPC Earnings Before Tax: 1. Record MPC EBT: The company achieved a record Master Planned Communities (MPC) Earnings Before Tax (EBT) of $145 million in Q3 2024, driven by the sale of 191 acres of residential land at an average price of $1 million per acre.
NOI Growth Surge: 2. Significant Year-over-Year NOI Growth: Howard Hughes reported an 8% year-over-year increase in net operating income (NOI) across its operating assets, totaling $65 million, with notable growth in office and multifamily sectors.
Condo Sales Revenue Forecast: 3. Strong Condo Sales Projections: The completion of Victoria Place is expected to generate $760 million in revenue with gross margins of 27% to 28% in Q4 2024, contributing to nearly $210 million in gross profit from condo sales for the full year.
Land Sale Revenue Surge: 4. Increased Land Sale Revenues: The company reported land sale revenues of $198 million in Q3 2024, marking a 163% increase year-over-year, with an impressive average residential price per acre rising by 13%.
Future Revenue Projections: 5. Robust Future Revenue from Pre-Sales: Projects under construction and in predevelopment are 88% pre-sold, representing $3.4 billion in future revenue expected to be recognized between now and 2027.
Negative
Home Sales Decline: 1. Decline in Home Sales: New home sales across master planned communities (MPCs) fell by 19% year-over-year, attributed to a reduced inventory of finished homes available for sale in Summerlin.
Floor Plan Availability Decline: 2. Reduced Floor Plans Available: At the end of Q3, homebuilders in Summerlin had 30% fewer floor plans available for sale compared to the prior year, indicating a significant reduction in product availability.
Inventory Shortage Analysis: 3. Low Inventory Levels: Vacant Developed Lots (VDLs) in Summerlin and Bridgeland were reported at 11 and 12 months, respectively, well below the equilibrium of approximately 20 months, suggesting a supply constraint.
Rising G&A Expenses: 4. Increased G&A Expenses: General and Administrative (G&A) expenses rose by 15% year-over-year, with cash G&A expected to range between $83 million and $88 million, indicating rising operational costs.
Loss on Asset Sale: 5. GAAP Loss on MUD Sale: The sale of existing lot receivables resulted in a GAAP loss of $52 million after accounting adjustments, highlighting challenges in monetizing certain assets.
HHH FAQs
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HHH Earning Call Sentiment
Howard Hughes Holdings Inc. (HHH) Q3 2024 Earnings Call Transcript
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00:00
00:00
HHH.N
5.25%Positive
The earnings call summary indicates strong financial performance with record quarterly MPC EBT and increased NOI across segments. Positive economic factors like declining mortgage rates are expected to boost demand. Despite a $90 million settlement and high debt, the company maintains a strong cash position. The Q&A reveals positive sentiment towards future revenue and NOI improvements. Although there is no explicit shareholder return plan, the overall outlook remains optimistic, especially with robust condo sales guidance and improving market conditions. The company's market cap suggests a moderate reaction, leading to a positive stock price prediction.
