Homebuilder Green Brick's Q2 revenue misses expectations as average sales price drops
Overview
Green Brick Q2 revenue misses analyst expectations, per LSEG data
Diluted EPS for Q2 declines 20.3% yr/yr
Record new home deliveries and net new orders for any second quarter
Outlook
Company expects 2025 land development spending to be about $300 mln
Result Drivers
NEW HOME DELIVERIES - Record deliveries of 1,042 units, up 5.6% YOY, despite softer housing market
PRICES DROP - Deliveries growth offset by lower average sales price mainly on increased discounts and incentives
SALES INCENTIVES - Increased discounts and incentives led to a 5.3% decline in average sales price, affecting revenue
GROSS MARGIN DECLINE - Homebuilding gross margins fell 410 bps YOY due to higher incentives and lower sales prices
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $549.15 mln | $550.30 mln (3 Analysts) |
Q2 Net Income |
| $81.95 mln |
|
Q2 Homebuilding Gross Margin |
| 30.4% |
|
Q2 Gross Profit |
| $167.51 mln |
|
Q2 Pretax Profit |
| $112.29 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy."
Wall Street's median 12-month price target for Green Brick Partners Inc is $66.50, about 1% above its July 29 closing price of $65.82
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nBw1DmY4Ja
