SDHC Earnings Prediction
The chart below shows how SDHC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SDHC sees a -1.65% change in stock price 10 days leading up to the earnings, and a -6.42% change 10 days following the report. On the earnings day itself, the stock moves by +1.89%. This data can give you a slight idea of what to expect for the next quarter's release.
SDHC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
277.83M
40.58%
25.76%
Gross Margin
26.52%
-8.20%
-0.79%
Operating Margin
14.24%
-17.35%
15.49%
Net Margin
13.61%
-20.73%
21.52%
EPS
0.10
-97.73%
-75.61%
No Data Available
SDHC Earnings Analysis
Smith Douglas Homes Corp. Corporation (SDHC.N) Earnings Conference Call
Positive
Strong Pretax Income: Smith Douglas Homes generated pretax income of $39.6 million or $0.58 per diluted share in Q3 2024, reflecting solid profitability.
Record Home Deliveries: The company achieved a record quarter with new home deliveries of 812, contributing to a 41% year-over-year increase in home closing revenue to $277.8 million.
Strong Gross Margin Performance: Gross margin for home sales came in at the high end of guidance at 26.5%, indicating strong operational performance.
Cost Management Success: SG&A expenses fell to 12.3% of revenue for the quarter, showcasing effective cost management strategies.
Strong Cash Position: The company ended the quarter with approximately $24 million in cash and no borrowings under its $250 million revolving credit facility, positioning it well for future growth.
Negative
Net Income Decline: The company reported a net income of $37.8 million for the quarter, which is a decrease from previous expectations due to higher costs.
Quarterly Order Activity Trends: Order activity during the quarter followed normal seasonal patterns but showed some variation caused by movements in mortgage rates, indicating potential instability in future sales.
Home Delivery Challenges: Despite a record number of home deliveries at 812, the company faced challenges in maintaining profitability due to rising costs and market fluctuations.
SG&A Expense Analysis: The SG&A expenses fell to 12.3% of revenue for the quarter, but this was still higher than anticipated, indicating potential inefficiencies in cost management.
Gross Margin Target Adjustment: The company anticipates a gross margin target of 25% for the upcoming year, which is a decrease from previous guidance, reflecting ongoing challenges in the market.
SDHC FAQs
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SDHC Earning Call Sentiment
Smith Douglas Homes Corp (SDHC) Q3 2024 Earnings Call Transcript
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SDHC.N
-0.67%Positive
The earnings call presents a mixed outlook: strong financial performance with record revenue and low leverage, but concerns about rising lot costs, regulatory delays, and competitive pressures impacting future margins. While operational efficiency and backlog support growth, the lack of a share repurchase program and potential economic headwinds temper enthusiasm. The Q&A revealed some uncertainty in pricing strategy, but overall guidance remains consistent. Given these factors, the stock price is likely to remain stable, resulting in a neutral sentiment.
