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
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).
Sep. 3, 2014, 10:16 AM
- The homebuilders are lower in early action following Toll Brothers beating earnings estimates, but expressing caution on pricing power, and cutting guidance for full-year home deliveries.
- ITB -0.8%, XHB -0.5%.
- Individual names: Hovnanian (HOV -0.9%), Lennar (LEN -1.5%), KB Home (KBH -1.8%), PulteGroup (PHM -1.4%), D.R. Horton (DHI -1.1%), Ryland (RYL -1.5%), NVR (NVR -1.1%), Standard Pacific (SPF -1.1%).
Jul. 31, 2014, 4:11 PM
Jul. 24, 2014, 10:09 AM
- The ITB is lower by 1.5% and the XHB by 0.7% with earlier earnings misses from Pulte (PHM -1.5%) and D.R. Horton (DHI -5%). and just-released disappointing new home sales data weighing. Also reporting this morning was M/I Homes (MHO -3.2%), and that company beat estimates.
- June single-family new home sales of 406K fell 8.1% from May's rate of 442K (which was revised down from 504K). Expectations for June sales were 479K.
- The supply of new homes rises to 5.8 months at June's sales pace from 5.2 months previously.
- Other names: Lennar (LEN -1.6%), Ryland (RYL -2.3%), Standard Pacific (SPF -2%), Hovnanian (HOV -0.9%), Toll Brothers (TOL -2.2%).
Jun. 20, 2014, 10:38 AM
- The averages are nudging higher, but not the homebuilder names after Owens Corning cuts 2014 guidance on continued weakness in its roofing business.
- Soft action in Q1 continued through April and May, says the company, which now sees H1 roofing volumes as much as 20% lower than 2013. Owens still expects H2 to be better, but is less confident of that forecast today than it was a few months ago.
- ETFs: ITB -1.3%, XHB -1.2%
- Toll Bros. (TOL -1.6%), TriPointe Homes (TPH -1.3%), Lennar (LEN -1.6%), Ryland (RYL -1.8%), Hovnanian (HOV -0.9%), PulteGroup (PHM -1.2%), D.R. Horton (DHI -0.8%), Standard Pacific (SPF -1.8%)
May 1, 2014, 4:33 PM
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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