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

M/I Homes (NYSE:MHO) announced its quarterly earnings data on Wednesday. The construction company reported $3.14 EPS for the quarter, topping analysts’ consensus estimates of $3.13 by $0.01, FiscalAI reports. M/I Homes had a return on equity of 11.53% and a net margin of 7.44%.The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.05 billion. During the same period in the previous year, the firm earned $4.42 earnings per share. The firm’s quarterly revenue was down 6.0% compared to the same quarter last year.

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 Price Performance

Shares of MHO stock traded down $3.00 during trading on Friday, hitting $148.33. The company had a trading volume of 87,953 shares, compared to its average volume of 246,137. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.95 and a current ratio of 7.19. The firm has a market capitalization of $3.80 billion, a P/E ratio of 12.48 and a beta of 1.60. The stock’s 50-day moving average price is $146.11 and its 200 day moving average price is $137.08. M/I Homes has a one year low of $116.78 and a one year high of $163.66.

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On M/I Homes

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. State Street Corp raised its stake in M/I Homes by 2.2% in the fourth quarter. State Street Corp now owns 1,337,188 shares of the construction company’s stock valued at $171,093,000 after purchasing an additional 28,187 shares in the last quarter. Millennium Management LLC raised its position in M/I Homes by 107.5% during the fourth quarter. Millennium Management LLC now owns 434,484 shares of the construction company’s stock valued at $55,592,000 after purchasing an additional 225,120 shares in the last quarter. Invesco Ltd. lifted its stake in M/I Homes by 116.4% during the third quarter. Invesco Ltd. now owns 300,912 shares of the construction company’s stock worth $43,464,000 after purchasing an additional 161,881 shares during the last quarter. Qube Research & Technologies Ltd boosted its holdings in shares of M/I Homes by 5.0% in the 2nd quarter. Qube Research & Technologies Ltd now owns 228,931 shares of the construction company’s stock valued at $25,668,000 after purchasing an additional 10,898 shares in the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of M/I Homes by 10.1% in the 3rd quarter. Bank of America Corp DE now owns 187,946 shares of the construction company’s stock valued at $27,147,000 after purchasing an additional 17,284 shares in the last quarter. 95.14% of the stock is owned by institutional investors and hedge funds.

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.