Thu, Apr. 16, 11:06 AM
- Housing starts bounced just 2% to 926K in March following February's supposedly weather-related plunge. Expectations had been for a 1.05M starts in March. Gains in the northeast and midwest in March were offset by declines in the south and west.
- Toll Brothers (TOL -2.4%), Lennar (LEN -2.1%), Hovnanian (HOV -2.8%), PulteGroup (PHM -2%), Ryland (RYL -2.7%), D.R. Horton (DHI -2%), KB Home (KBH -1.9%), Standard Pacific (SPF -2.7%), NVR (NVR -1.3%).
- Previously: Lame rebound for housing starts (April 16)
- Previously: Declines in the south and west hold back housing starts (April 16)
Tue, Mar. 24, 10:08 AM
- New home sales in February at a seasonally-adjusted annualized rate of 539K is the fastest pace in seven years. With January's revision up to 500K (from 481K), it's the fist time sales have hit 500K for two or more consecutive months since early 2008.
- The median sales price rose 2.6% to $275.5K, and inventory stands at 4.7 months of homes on the market at the current sales pace, down from 5.7 months in January.
- Homebuilder ETFs: ITB +1.1%, XHB +1.1%.
- Toll Brothers (TOL +1.3%), Hovnanian (HOV +2.9%), Pulte (PHM +1.8%), Ryland (RYL +1.5%), Lennar (LEN +1.7%), KB Home (KBH +2.4%), Standard Pacific (SPF +1.4%).
- Full report
- Previously: New home sales fly past expectations in February (March 24)
Fri, Mar. 20, 11:38 AM
- A good week for the homebuilders gets better after KB Home's FQ1 cruised through estimates, and the company said recently contracting profit margins are set to turn the other way for the rest of the year (the stock's up 7%).
- ITB +2.3%, XHB +1.6%
- Toll Brothers (TOL +3.2%), Hovnanian (HOV +2.5%), Lennar (LEN +3.6%), Pulte (PHM +2.8%), M/I Homes (MHO +3.6%), D.R. Horton (DHI +2.1%), Ryland (RYL +2.4%), Standard Pacific (SPF +2.8%).
- Previously: KB Home on the move after earnings beat, margin comments (March 20)
Tue, Feb. 24, 11:09 AM
- Toll Brothers cruised past FQ1 estimates and boosted guidance, and Meritage Homes reported big increases in new orders in January. Both of those names are ahead more than 3%.
- ETFs: ITB +1.85%, XHB +1.1%
- Others: Lennar (LEN +2.5%), PulteGroup (PHM +1.7%), Hovnanian (HOV +1.4%), Ryland (RYL +1.8%), KB Home (KBH +2%), Standard Pacific (SPF +3%), D.R. Horton (DHI +1.4%).
Mon, Feb. 23, 10:51 AM
- Existing home sales fell more than forecast in January, sliding to the lowest seasonally-adjusted annualized rate since April.
- Previously: Treasury yields head south following soft home sales report (Feb. 23)
- Compass Point throws in the towel on its Outperform calls on Standard Pacific (SPF -1.2%) and Beazer Homes (BZH -1.4%), downgrading both to Neutral.
- ETFs: ITB -0.7%, XHB -0.15%
- Toll Brothers (TOL -0.5%), Lennar (LEN -1%), Hovnanian (HOV -2.5%), PulteGroup (PHM -0.7%), Ryland (RYL -1.3%), D.R. Hoton (DHI -0.8%).
Thu, Feb. 19, 1:14 PM
- Rising demand driven by strong household formation in 2014 H2 should be tailwind, says the report, and the seven names targeted by the team give investors exposure to "move-up buyers."
- "Y/Y growth in average backlog prices was generally ahead of our assumptions in the most recent round of earnings reports, which suggests to us that the move-up buyer is the demographic where our builders can maintain or raise prices."
- PT changes (mostly thanks to boosted multiples): D.R. Horton (DHI +1.1%) to $28 from $23. Lennar (LEN +0.9%) to $44 from $38. Meritage (MTH -0.5%) to $53 from $42. PulteGroup (PHM +0.8%) to $27 from $23. Ryland (RYL +1.1%) to $53 from $45. Standard Pacific (SPF +0.7%) to $9 from $8. Tri Point Homes (TPH -0.2%) to $18 from $15.
Fri, Feb. 6, 3:05 PM
- With the 10-year Treasury yield ahead by 12 basis points to 1.94% and short-term interest rate futures moving quickly to price in one more rate hike this year, the homebuilder names are instead choosing to focus on the strongest 3-months of job growth in this country in nearly 20 years.
- Previously: Rate hike expectations to shift after big jobs report? (Feb. 6)
- The ITB is up 1.95% and the XHB - more weighted towards suppliers rather than homebuilders - is up 0.6%.
- Toll Brothers (TOL +0.9%), Lennar (LEN +3%), Hovnanian (HOV +1.7%), Ryland (RYL +1.7%), D.R. Horton (DHI +2.2%), KB Home (KBH +2.8%).
- Standard Pacific (SPF +5.7%) is the strongest of the bunch after beating Q4 estimates last night. Net new orders of 978 in Q4 rose 11% Y/Y, with the ASP up 10% to $491K.
- Previously: Standard Pacific beats by $0.01, beats on revenue (Feb. 5)
Thu, Feb. 5, 4:21 PM
Thu, Jan. 15, 11:31 AM
- The company earlier reported bottom-line results which beat estimates, but the top line slightly missed.
- FQ4 (ending Nov. 30) deliveries of 6,950 homes gained 23% from a year ago. New orders of 5,492 homes up 22%, up 24% in dollar terms. ASP of $329K vs. $307K a year ago. Incentives of 23.1K per home, or 6.6% of home sales revenue vs. $20.6K and 6.3% a year ago.
- Backlogs of 5,832 homes up 21%, up 22% in dollar terms.
- Gross margins of 25.6% fell 120 basis points from a year ago. Operating margin of 16% down 90 bps.
- Like KB Home earlier this week, Lennar (LEN -4%) warns of lower gross margins for fiscal 2015.
- ITB -2.9%, XHB -2.2%
- Toll Brothers (TOL -2.7%), Hovnanian (HOV -5.3%), D.R. Horton (DHI -4.9%), Ryland (RYL -4.7%), KB Home (KBH -5.5%), Pulte (PHM -4.3%) M.D.C. Holdings (MDC -5.9%), NVR (NVR -2.5%), Standard Pacific (SPF -3.2%)
- Previously: Lennar beats by $0.11, misses on revenue (Jan. 15)
Mon, Jan. 12, 11:05 AM
Mon, Jan. 12, 8:02 AM
- The president's announcement of significantly lower FHA mortgage premiums indicates easier home loan financing is on the way - a game-changer for the housing industry, says Raymond James, upgrading D.R. Horton (NYSE:DHI), KB Home (NYSE:KBH), MDC Holdings (NYSE:MDC), Ryland (NYSE:RYL), and Standard Pacific (NYSE:SPF) to Outperform from Neutral.
- Previously: Homebuilders welcome report of lower FHA fees (Jan. 7)
Tue, Jan. 6, 6:56 AM
Nov. 21, 2014, 9:08 AM
- KB Homes (NYSE:KBH), D.R. Horton (NYSE:DHI), are M.D.C. Holdings (NYSE:MDC) all have their Underperform ratings pulled, and are now Market Perform.
- The team, however, loses patience with Standard Pacific (NYSE:SPF) after a 16% decline YTD, and downgrades to Market Perform from Outperform.
- KBH, DHI, and MDC are all higher by more than 1% in premarket action.
Oct. 30, 2014, 4:06 PM| Comment!
Sep. 17, 2014, 10:04 AM
- Lennar's sizable earnings beat included a 23% gain in new orders - a strong result given the slowdown seen from some other builders.
- Previously: Lennar up 4.3% after reporting big quarter
- ETFs: ITB +2.6%, XHB +1.8%
- Individual players: Ryland (RYL +4.8%) Pulte (PHM +3.8%), Toll Bros. (TOL +3.2%), D.R. Horton (DHI +4%), Hovnanian (HOV +5.8%), KB Home (KBH +4.4%), Comstock (CHCI +4.2%), Standard Pacific (SPF +3.8%).
Sep. 9, 2014, 7:39 AM
- Lennar (NYSE:LEN) and D.R. Horton (NYSE:DHI) are upgraded to Overweight, while PulteGroup (NYSE:PHM) is upgraded to Neutral following a near-9% drop YTD.
- Downgrades from Overweight to Neutral: M/I Homes (NYSE:MHO), Meritage Homes (NYSE:MTH). Downgrades from Neutral to Underweight: M.D.C. Holdings (NYSE:MDC) and Standard Pacific (NYSE:SPF).
SPF vs. ETF Alternatives
Standard Pacific Corp is engaged in the business of constructing single-family attached and detached homes with operations in the metropolitan markets in California, Florida, Arizona, Texas, the Carolinas and Colorado.
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