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Mar 31, 2024

Tri Pointe Q1 2024 Earnings Report

Tri Pointe reported strong Q1 2024 results, exceeding guidance across key operating metrics with increased home sales revenue and net new home orders.

Key Takeaways

Tri Pointe Homes reported a strong first quarter in 2024, with home sales revenue increasing by 20% to $918 million and net new home orders up by 12%. Net income reached $99 million, with diluted earnings per share of $1.03, a 41% year-over-year improvement.

Net new home orders increased 12% year-over-year to 1,814.

Backlog units increased 35% year-over-year to 2,741.

Active selling communities increased 15% year-over-year to 156.

Home sales revenue reached $918 million.

Total Revenue
$939M
Previous year: $771M
+21.9%
EPS
$1.03
Previous year: $0.73
+41.1%
Avg New Home Sales Price
$659K
Previous year: $722K
-8.7%
Avg Backlog Sales Price
$712K
Previous year: $742K
-4.0%
Gross Profit
$211M
Previous year: $184M
+14.5%
Cash and Equivalents
$944M
Previous year: $966M
-2.3%
Free Cash Flow
$138M
Previous year: $129M
+7.1%
Total Assets
$4.97B
Previous year: $4.74B
+4.9%

Tri Pointe

Tri Pointe

Tri Pointe Revenue by Geographic Location

Forward Guidance

For the second quarter, the Company anticipates delivering between 1,500 and 1,600 homes at an average sales price between $670,000 and $680,000. The Company expects homebuilding gross margin percentage to be in the range of 22.5% to 23.5% for the second quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 11.0% to 11.5%. Finally, the Company expects its effective tax rate for the second quarter to be approximately 26.0%.

Positive Outlook

  • Anticipates delivering between 1,500 and 1,600 homes.
  • Expects average sales price between $670,000 and $680,000.
  • Homebuilding gross margin percentage to be in the range of 22.5% to 23.5%.
  • SG&A expense as a percentage of home sales revenue in the range of 11.0% to 11.5%.
  • Effective tax rate for the second quarter to be approximately 26.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income