Tri Pointe Homes, Inc. (TPH) Reports In-Line Q4 EPS; Lowers Outlook on Margins & Houston

Tri Pointe Homes, Inc. (NYSE: TPH) reported Q4 EPS of $0.26, in-line with the analyst estimate of $0.26. Revenue for the quarter came in at $622.96 million versus the consensus estimate of $659.7 million.

New home orders increased to 714 homes for the fourth quarter of 2014, as compared to 521 homes for the same period in 2013. In addition, average active selling communities increased to 105.6 as compared to 90.1 for the same period in the prior year, mainly due to the addition of legacy TRI Pointe. The Company’s overall absorption rate per average selling community for the three months ended December 31, 2014 was 6.8 orders (2.25 monthly) compared to 5.8 orders (1.93 monthly) during the same period in 2013.

Tri Pointe Homes, Inc. sees FY2015 EPS of $1.15-$1.30, versus prior guidance of $1.25-$1.40 and the consensus of $1.26. The company cited lower margins, combined with a more conservative outlook regarding the timing of certain land sales and the uncertainty of the Houston market.

“We are pleased with the progress we made in the fourth quarter and full year 2014,” commented Douglas F. Bauer, TRI Pointe’s Chief Executive Officer. “Over the last year, TRI Pointe has transformed itself from a regional builder with limited size and scope to a more diversified company with a portfolio of six homebuilding brands building in ten of the best markets in the country. The integration of the WRECO homebuilders is complete, and now we are extremely excited about building a market leading culture that will be recognized for market share and for being a top performer. With our Company’s collective goals now in alignment, we can focus our attention on the spring selling season and work towards unlocking the full potential of our combined company. Those efforts are off to a good start so far this year, as net orders for January and February were up 59% compared to the combined orders of legacy TRI Pointe and the WRECO homebuilders for the same two months last year.”

Mr. Bauer continued, “To better reflect the new size and scope of our organization, we are pleased to announce the rebranding of the Company to TRI Pointe Group. The rebrand to TRI Pointe Group not only signifies a new name, but also a new national company comprised of 6 premium regional homebuilders. We plan to reorganize our corporate structure with a new holding company parent to be named TRI Pointe Group. We expect to complete the reorganization in the second quarter of 2015. The TRI Pointe Group stock ticker will remain 'TPH.' The TRI Pointe Homes brand will continue its homebuilding operations in California and Colorado as a wholly owned subsidiary of the TRI Pointe Group.”

For earnings history and earnings-related data on Tri Pointe Homes, Inc. (TPH) click here.

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