The New Home Co. (NWHM) Misses Q2 EPS by 2c, Revenues Beat

The New Home Co. (NYSE: NWHM) reported Q2 EPS of $0.01, $0.02 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $155.6 million versus the consensus estimate of $145.15 million.

Second Quarter 2018 Highlights Compared to Second Quarter 2017

• Total revenues of $155.6 million vs. $144.1 million
• Home sales revenue of $117.5 million, up 21%; deliveries up 52%
• Net new home orders up 98%
• Backlog units up 66%
• Ending community count up 122%

“During the 2018 second quarter, we enjoyed a solid spring selling season with net new orders nearly doubling over the prior period," said Larry Webb, Chief Executive Officer of The New Home Company. "Our order growth benefited from a 100% increase in average active selling communities, resulting in a 66% increase in backlog units, and has positioned us well for the second half of the year."

Mr. Webb continued, "Homes sales revenue rose 21% during the quarter thanks to a 52% increase in home deliveries reflecting our continued growth and diversification into more affordable price points. The 2018 second quarter also included home orders and deliveries from our first Inland Empire community in Southern California, a new market that we expect to become a meaningful part of our business. We continue to expand our investments in California and Arizona where strong housing fundamentals continue and our wholly owned lot count grew by 77% over the prior year.\"

Mr. Webb concluded, "We remain confident in our Company's strategy and long-term outlook as evidenced by the commencement of our stock repurchase plan during the quarter. As we enter the second half of the year, I am excited about the opportunities for our business and look forward to delivering on our growth and strategic objectives for 2018 and beyond."

For earnings history and earnings-related data on The New Home Co. (NWHM) click here.

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