SPF - great earnings report - Beat EPS, Beat rev....
Reports Q2 (Jun) earnings of $0.14 per share, $0.01 better than the Capital IQ Consensus Estimate of $0.13; revenues rose 35.1% year/year to $592.5 mln vs the $555.1 mln consensus.
income of $91.8 million, up 80%
183 average active selling communities, up 12%
Net new orders of 1,524, up 1%; Dollar value of net new orders up 10%
New orders being up - even just 1% is big - the other HB's are all showing new order being down. Also the margin is now up:
Gross margin from home sales of 26.6%, compared to 23.7%
Operating margin from home sales of $89.7 million, or 15.2%, compared to $48.2 million, or 11.1%
The move to mid to upper priced homes has paid huge dividends in terms of increased margins for SPF. It also allows them to get a bigger return for each parcel of land. Plus we probably haven't seen the positive results of their business on the east coast yet. I would expect positive news for the rest of the year. SPF is less open to the swings in the first time home buyers market and the lower margins that comes with that territory.
Yeah - I like that aspect of SPF as well. Firms like KBH still have a lot of focus on first time buyers. SPF's locations are the hot spots + 12% more active communities is a big plus going forward. Pretty soon SPF will be trading at NAV - way to cheap IMHO...