Century Communities reports Q3 EPS $2.58, consensus $1.64

Reports Q3 revenue $889.4M, consensus $785.15M. “We generated sequential gains in our deliveries, gross margins and earnings during Q3,” said Dale Francescon, Co-CEO. “Our deliveries of 2,264 homes increased on a sequential basis for the second quarter in a row and benefitted from continued improvements in our cycle times. Our adjusted gross margins of 25.8% increased by 480 basis points from Q2 levels due to improvements in direct construction costs, reduced incentives and shorter cycle times. As a result, our diluted EPS of $2.58 increased by 62% over Q2 levels. At their midpoints, we have increased our full year 2023 guidance for homes deliveries to be in the range of 8,600 to 9,000 homes and our home sales revenues to be in the range of $3.2B-$3.4B.” Co-CEO Rob Francescon said, “Our net new home contracts of 2,149 were in line with our expectations and typical seasonality, with net orders in both August and September exceeding July levels, even with the increase in interest rates over the past several months. Our total lot inventory of 68,570 increased by 19% on a sequential basis, with the higher lot count driven almost entirely by gains in our controlled lots, which accounted for 56% of our total lots at the end of Q3. Our community count of 252 increased by 16% versus year ago levels, and we continue to expect our community count to be in the range of 250-260 communities by year end, which positions us well for more positive results in 2024 and beyond. Our balance sheet remains strong with $2.3B in stockholders’ equity and $1.0B in liquidity, and we intend to continue investing in our business and returning capital to shareholders.”