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

M/I Homes (NYSE:MHO) released its quarterly earnings data on Wednesday. The construction company reported $3.14 earnings per share for the quarter, beating analysts’ consensus estimates of $3.13 by $0.01, FiscalAI reports. The business had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.05 billion. M/I Homes had a return on equity of 12.91% and a net margin of 8.24%.The company’s revenue was down 6.0% on a year-over-year basis. During the same quarter last year, the business posted $4.42 EPS.

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

NYSE MHO traded up $3.69 on Wednesday, hitting $155.83. The company had a trading volume of 145,813 shares, compared to its average volume of 245,457. The company has a market capitalization of $3.99 billion, a PE ratio of 11.73 and a beta of 1.60. The company’s fifty day moving average price is $145.14 and its 200-day moving average price is $136.84. The company has a debt-to-equity ratio of 0.30, a current ratio of 8.40 and a quick ratio of 1.95. M/I Homes has a 12-month low of $116.78 and a 12-month high of $163.66.

Hedge Funds Weigh In On M/I Homes

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its position in shares of M/I Homes by 90.6% during the second quarter. EverSource Wealth Advisors LLC now owns 284 shares of the construction company’s stock worth $32,000 after purchasing an additional 135 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in M/I Homes in the 4th quarter valued at $49,000. CIBC Private Wealth Group LLC boosted its stake in M/I Homes by 53.7% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 475 shares of the construction company’s stock worth $69,000 after purchasing an additional 166 shares during the last quarter. WealthCollab LLC grew its holdings in shares of M/I Homes by 16.5% during the second quarter. WealthCollab LLC now owns 614 shares of the construction company’s stock worth $69,000 after buying an additional 87 shares in the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of M/I Homes during the fourth quarter worth $83,000. Hedge funds and other institutional investors own 95.14% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on MHO shares. Zacks Research raised M/I Homes from a “strong sell” rating to a “hold” rating in a report on Friday, June 26th. Zelman & Associates downgraded M/I Homes from an “outperform” rating to a “neutral” rating in a report on Tuesday, July 7th. Freedom Capital upgraded M/I Homes to a “strong-buy” rating in a research report on Wednesday, June 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of M/I Homes in a research note on Friday, May 15th. Finally, Seaport Research Partners reaffirmed a “neutral” rating on shares of M/I Homes in a report on Tuesday, April 7th. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $161.67.

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.