Century Communities (NYSE:CCS) Announces Quarterly Earnings Results

Century Communities (NYSE:CCS) posted its quarterly earnings data on Wednesday. The construction company reported $1.30 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.67, FiscalAI reports. Century Communities had a return on equity of 6.05% and a net margin of 3.41%.The company had revenue of $927.23 million for the quarter, compared to analyst estimates of $857.23 million. During the same quarter in the previous year, the firm earned $1.37 earnings per share. The business’s revenue was down 8.1% on a year-over-year basis.

Here are the key takeaways from Century Communities’ conference call:

• Century Communities posted strong second-quarter results, with EPS of $1.26 up 11% year over year and 50% sequentially, and deliveries of 2,506 homes beating guidance. Management said improved absorption and tighter cost control helped drive the beat.
• Margins improved in the quarter, as adjusted gross margin rose to 20% and direct construction costs fell 5% sequentially. The company credited lower incentives, better operating efficiency, and growing use of ARMs for supporting pricing power.
• Demand trends were encouraging, with net orders up 3% year over year and traffic higher across the quarter. Cancellation rates also declined, suggesting buyers remain committed once they sign.
• The company raised full-year 2026 guidance, now expecting 9,750 to 10,500 home deliveries and $3.5 billion to $3.8 billion in home sales revenue. Management also guided third-quarter deliveries to 2,500 to 2,700 homes.
• Century ended the quarter with a record 330 communities, more than 60,000 owned and controlled lots, and book value per share of $90.24. It also repurchased 3% of shares year to date at a significant discount to book value while maintaining its dividend.

Century Communities Stock Up 7.0%

Shares of NYSE:CCS opened at $69.05 on Friday. The company has a 50 day moving average price of $60.92 and a two-hundred day moving average price of $61.89. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.57 and a current ratio of 0.57. The company has a market capitalization of $1.99 billion, a PE ratio of 15.14 and a beta of 1.29. Century Communities has a 52 week low of $47.28 and a 52 week high of $76.00.

Century Communities Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Wednesday, May 27th were paid a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend was Wednesday, May 27th. Century Communities’s dividend payout ratio is presently 28.83%.

Hedge Funds Weigh In On Century Communities

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada lifted its holdings in Century Communities by 6.5% during the first quarter. Royal Bank of Canada now owns 14,837 shares of the construction company’s stock worth $995,000 after acquiring an additional 910 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Century Communities by 138.0% in the first quarter. AQR Capital Management LLC now owns 71,831 shares of the construction company’s stock worth $4,820,000 after acquiring an additional 41,653 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Century Communities by 3.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,429 shares of the construction company’s stock worth $1,102,000 after purchasing an additional 529 shares during the period. Jones Financial Companies Lllp raised its position in shares of Century Communities by 1,513.3% during the first quarter. Jones Financial Companies Lllp now owns 1,210 shares of the construction company’s stock worth $81,000 after purchasing an additional 1,135 shares during the period. Finally, Intech Investment Management LLC lifted its holdings in shares of Century Communities by 16.7% during the 1st quarter. Intech Investment Management LLC now owns 21,096 shares of the construction company’s stock valued at $1,416,000 after purchasing an additional 3,026 shares in the last quarter. Institutional investors and hedge funds own 99.54% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CCS. Zelman & Associates lowered shares of Century Communities from a “neutral” rating to an “underperform” rating in a research note on Tuesday, July 7th. JPMorgan Chase & Co. dropped their price target on shares of Century Communities from $49.00 to $45.00 and set an “underweight” rating for the company in a research note on Wednesday, April 29th. Weiss Ratings lowered shares of Century Communities from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, May 13th. Zacks Research raised shares of Century Communities from a “strong sell” rating to a “hold” rating in a research note on Monday, June 22nd. Finally, B. Riley Financial lowered shares of Century Communities from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $75.00 to $64.00 in a report on Thursday, April 23rd. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Century Communities currently has an average rating of “Reduce” and a consensus target price of $67.00.

About Century Communities

Century Communities, Inc is a national homebuilder and land developer headquartered in Greenwood Village, Colorado. The company is engaged in the acquisition, development, construction and sale of single- and multi-family residential homes, offering a range of floor plans and design options to homebuyers. In addition to its core homebuilding activities, Century Communities provides ancillary services such as mortgage financing, title and closing services, and insurance products through its wholly owned subsidiaries, aiming to deliver a comprehensive homebuying experience.

Founded in 2009, Century Communities rapidly expanded through both organic growth and strategic land acquisitions, positioning itself in high-growth markets across the United States.