The 10-second takeaway
For the quarter ended Dec. 31 (Q4), M/I Homes beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share shrank.
Margins improved across the board.
M/I Homes chalked up revenue of $176.8 million. The two analysts polled by S&P Capital IQ expected revenue of $173.2 million. Sales were 7.2% higher than the prior-year quarter's $165.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.08. The one earnings estimate compiled by S&P Capital IQ predicted $0.02 per share on the same basis. GAAP EPS were -$0.16 for Q4 compared to -$0.60 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.2%, 10 basis points better than the prior-year quarter. Operating margin was 0.6%, 10 basis points better than the prior-year quarter. Net margin was -1.7%, 500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $117.0 million. On the bottom line, the average EPS estimate is -$0.25.
Next year's average estimate for revenue is $654.9 million. The average EPS estimate is $0.06.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 145 members out of 347 rating the stock outperform, and 202 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give M/I Homes a green thumbs-up, and 102 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on M/I Homes is buy, with an average price target of $16.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.