M/I Homes (NYSE:MHO) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

M/I Homes (NYSE:MHO) announced its quarterly earnings data on Wednesday. The construction company reported $3.14 earnings per share for the quarter, topping analysts’ consensus estimates of $3.13 by $0.01, FiscalAI reports. M/I Homes had a net margin of 8.24% and a return on equity of 12.91%. The company had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.05 billion. During the same period in the previous year, the business earned $4.42 EPS. The firm’s revenue for the quarter was down 6.0% on a year-over-year basis.

Here are the key takeaways from M/I Homes’ conference call:

• Second-quarter new contracts rose 15% year over year to a record 2,387 homes, with the sales pace improving to 3.4 homes per community despite elevated mortgage rates and economic uncertainty.
• Revenue fell 9% and diluted earnings per share declined to $3.02 from $4.42 a year ago, while deliveries decreased 6% and SG&A rose to 12.6% of revenue.
• Gross margin was a solid 22.1%, or 22.5% excluding $4 million in inventory charges, supported by modest construction-cost improvements and pricing in select communities; however, mortgage-rate buydown costs increased and remain important to sustaining demand.
• The company ended the quarter with a strong balance sheet, including $736 million in cash, no revolver borrowings, 18% debt-to-capital, and an S&P credit-rating upgrade to BB+; it also repurchased $50 million of stock during the quarter.
• Management remains bullish on most markets and expects 2026 average community count to grow about 5%, but identified Tampa and Sarasota as challenged and noted continued uncertainty from interest rates, affordability, consumer confidence, and geopolitical conditions.

M/I Homes Stock Performance

Shares of NYSE:MHO traded up $3.04 during trading on Wednesday, hitting $155.18. The company’s stock had a trading volume of 140,952 shares, compared to its average volume of 245,343. The company has a 50-day moving average of $145.14 and a 200-day moving average of $136.84. M/I Homes has a 12 month low of $116.78 and a 12 month high of $163.66. The company has a debt-to-equity ratio of 0.30, a current ratio of 8.40 and a quick ratio of 1.95. The firm has a market cap of $3.97 billion, a price-to-earnings ratio of 11.66 and a beta of 1.60.

Institutional Trading of M/I Homes

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its position in M/I Homes by 90.6% in the second quarter. EverSource Wealth Advisors LLC now owns 284 shares of the construction company’s stock worth $32,000 after acquiring an additional 135 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in shares of M/I Homes during the 4th quarter valued at $49,000. CIBC Private Wealth Group LLC grew its position in shares of M/I Homes by 53.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 475 shares of the construction company’s stock valued at $69,000 after acquiring an additional 166 shares during the period. WealthCollab LLC increased its stake in shares of M/I Homes by 16.5% in the 2nd quarter. WealthCollab LLC now owns 614 shares of the construction company’s stock worth $69,000 after purchasing an additional 87 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of M/I Homes in the 4th quarter worth $83,000. 95.14% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms have issued reports on MHO. Freedom Capital upgraded shares of M/I Homes to a “strong-buy” rating in a research note on Wednesday, June 24th. Zelman & Associates downgraded shares of M/I Homes from an “outperform” rating to a “neutral” rating in a research report on Tuesday, July 7th. Seaport Research Partners reaffirmed a “neutral” rating on shares of M/I Homes in a research report on Tuesday, April 7th. Zacks Research upgraded shares of M/I Homes from a “strong sell” rating to a “hold” rating in a research note on Friday, June 26th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of M/I Homes in a report on Friday, May 15th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $161.67.

M/I Homes Company Profile

M/I Homes, Inc is a publicly traded residential homebuilder founded in 1976 and headquartered in Columbus, Ohio. The company designs, markets and constructs single-family homes and townhome communities across the United States, offering a range of floor plans with customizable design options. Its product portfolio includes starter homes, move-up homes and luxury models, as well as multi-family residences in urban and suburban infill locations.

In addition to its core homebuilding operations, M/I Homes provides mortgage, title and closing services through its in-house affiliate M/I Financial Services.