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Sep 30, 2022
Tri Pointe Q3 2022 Earnings Report
Tri Pointe Homes delivered strong profitability, with increased home sales revenue, homebuilding gross margin, and SG&A leverage.
Key Takeaways
Tri Pointe Homes reported a strong third quarter in 2022, with a net income available to common stockholders of $149 million, or $1.45 in diluted earnings per share. The company's performance was driven by improvements in home sales revenue, homebuilding gross margin, and SG&A leverage. Despite a weakening housing market, Tri Pointe Homes is focused on closing homes in backlog, generating cash, and maintaining price competitiveness.
Net income available to common stockholders was $149.2 million, or $1.45 per diluted share.
Home sales revenue increased to $1.1 billion, up 3% compared to the same quarter last year.
Homebuilding gross margin percentage increased to 27.1%.
Backlog dollar value remained flat at $2.4 billion.
Revenue by Geographic Location
Forward Guidance
For the fourth quarter, the Company anticipates delivering between 1,700 and 1,900 homes at an average sales price between $700,000 and $715,000. The Company expects homebuilding gross margin percentage to be in the range of 25.0% to 26.0% for the fourth quarter and anticipates its SG&A expense as a percentage of home sales revenue will be in the range of 8.0% to 9.0%. Finally, the Company expects its effective tax rate for the fourth quarter to be in the range of 24.0% to 25.0%.
Positive Outlook
- Deliveries between 1,700 and 1,900 homes
- Average sales price between $700,000 and $715,000
- Homebuilding gross margin percentage to be in the range of 25.0% to 26.0%
- SG&A expense as a percentage of home sales revenue will be in the range of 8.0% to 9.0%.
- Effective tax rate for the fourth quarter to be in the range of 24.0% to 25.0%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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