M/I Homes (NYSE:MHO) Announces Quarterly Earnings Results

M/I Homes (NYSE:MHO) issued its quarterly earnings results on Wednesday. The construction company reported $3.14 earnings per share for the quarter, beating the consensus estimate of $3.13 by $0.01, FiscalAI reports. M/I Homes had a return on equity of 12.91% and a net margin of 8.24%.The company had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same period in the previous year, the firm posted $4.42 EPS. M/I Homes’s revenue 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 Down 1.5%

NYSE:MHO traded down $2.27 during mid-day trading on Thursday, hitting $152.21. The company had a trading volume of 65,680 shares, compared to its average volume of 246,074. The business has a fifty day simple moving average of $145.67 and a 200-day simple moving average of $136.99. The company has a current ratio of 8.40, a quick ratio of 1.95 and a debt-to-equity ratio of 0.30. M/I Homes has a 1 year low of $116.78 and a 1 year high of $163.66. The firm has a market capitalization of $3.90 billion, a price-to-earnings ratio of 11.46 and a beta of 1.60.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On M/I Homes

A number of institutional investors and hedge funds have recently bought and sold shares of MHO. Royal Bank of Canada boosted its stake in shares of M/I Homes by 46.3% in the first quarter. Royal Bank of Canada now owns 29,774 shares of the construction company’s stock valued at $3,400,000 after purchasing an additional 9,422 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in M/I Homes by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,868 shares of the construction company’s stock worth $1,812,000 after buying an additional 703 shares in the last quarter. United Services Automobile Association acquired a new position in M/I Homes in the 1st quarter worth $205,000. Strs Ohio purchased a new position in M/I Homes in the 1st quarter valued at about $114,000. Finally, EverSource Wealth Advisors LLC boosted its position in M/I Homes by 90.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 284 shares of the construction company’s stock valued at $32,000 after buying an additional 135 shares during the last quarter. Hedge funds and other institutional investors own 95.14% of the company’s stock.

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.