Shares of Century Communities (CCS 3.88%), a leading national homebuilder, jumped 13% Friday morning as investors digested the company's record fourth-quarter and full-year 2020 results.
Net income jumped 72% to a company record $91.8 million, or $2.72 per diluted share. Home-sales revenue increased 22% for another best-ever figure of $946.8 million. Net new-home contracts increased 45% (also a fourth-quarter all-time high), and homes in backlog increased 66% to 3,439, a value of roughly $1.3 billion.
The strong results were enough for Wedbush analyst Jay McCanless to upgrade the stock from neutral to outperform, with his price target jumping from $48 to $64.
In a press release, co-CEO Dale Francescon said the company capitalized on "vigorous housing market demand trends."
The company's fourth quarter demonstrated momentum in its business, and investors can likely expect strong results to continue with increases in new contracts and its backlog. Century also plans to increase its penetration in high-growth markets and achieve incremental operational efficiencies to boost its top-line growth and margins.
Century Communities looks to remain a solid company within the construction industry in the near term.