Century Communities, Inc. CCS is set to report its third-quarter 2024 results on Oct. 23 after market close.
In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 7.7% and increased 65.6% year over year. Net sales missed the consensus mark by 0.4% but increased 23.1% from the prior-year quarter’s level.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
CCS’ bottom line topped the consensus mark in each of the trailing four quarters, with an average surprise of 35.6%.
Trend in Estimate Revision for CCS
The Zacks Consensus Estimate for Century Communities’ third-quarter earnings has decreased to $2.55 per share from $2.62 in the past 60 days. The estimated figure indicates a 1.2% decline from the year-ago quarter earnings of $2.58 per share.
Century Communities, Inc. Price and EPS Surprise
Century Communities, Inc. price-eps-surprise | Century Communities, Inc. Quote
The consensus mark for total revenues is pegged at $1,092 million, suggesting a 22.8% increase from the year-ago quarter’s $889.4 million.
Key Factors to Note for CCS’ Q3 Performance
Despite a volatile mortgage rate environment, Century Communities' top line is expected to have increased year over year in the third quarter, driven by strong demand for affordable new homes and higher deliveries. The company’s initiative of offering affordable homes along with several incentive offerings including lot premiums, interest rate buydowns and discounts on base home prices, is likely to have aided its performance in the to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter 2024 total homebuilding revenues is pegged at $1,066 million, up from $866 million reported in the year-ago period. Home deliveries in the quarter are expected to be 2,778 units, up 22.7% year over year. Also, the to-be-reported quarter’s ASP of home deliveries is expected to be up 1% to $386,000 year over year.
The company's strong relationships with third-party land developers across the Southeast, Texas and all Century Complete markets have likely supported its land-light strategy, which focuses on acquiring finished lots. Also, its focus on building homes on a spec basis is likely to have bode well. This initiative of the company helps in direct cost control, sparks the availability of quick move-ins and assures buyers of financing certainty.
The company has been benefiting from strong demand for new homes during the first half of 2024. The limited availability of existing homes has been boosting demand for new homes in the market. Given the improving trend, the third-quarter 2024 consensus mark for net new home contracts is pegged at 2,615 units, up 21.7% from 2,149 units reported in the year-ago period. The backlog is anticipated to decrease to 1,578 units from 1,887 units reported in the year-ago period.
From the margin perspective, high costs associated with land and labor are expected to have weighed on margins to some extent. The company expects to see some land inflation in the third and fourth quarters. However, its cost-controlling initiatives, including the reduction in direct construction costs, are likely to have offset these headwinds in the to-be-reported quarter.
What the Zacks Model Unveils for CCS
Our proven model does not conclusively predict an earnings beat for Century Communities this time around. The company does not have the right combination of two key ingredients, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), to increase the odds of an earnings beat.
Earnings ESP: Century Communities has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: CCS currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Construction sector, which have the right combination of elements to post an earnings beat in the quarter to be reported.
United Rentals, Inc. URI currently has an Earnings ESP of +0.51% and a Zacks Rank of 3.
URI’s earnings topped the Zacks Consensus Estimate mark in each of the trailing four quarters, with the average surprise being 4.8%. Earnings for the to-be-reported quarter are expected to have increased 6.5% from last-year quarter’s reported figure.
Howmet Aerospace Inc. HWM presently has an Earnings ESP of +1.48% and a Zacks Rank of 2.
HWM’s earnings for the to-be-reported quarter are expected to have gained 41.3% from last-year quarter’s reported figure. The company reported better-than-expected earnings in each of the last four quarters, the average surprise being 10.9%.
UFP Industries, Inc. UFPI currently has an Earnings ESP of +6.24% and a Zacks Rank of 3.
UFPI’s earnings topped the Zacks Consensus Estimate in two of the last four quarters and missed on the remaining two occasions, with the average surprise being 4.6%. Earnings for the to-be-reported quarter are expected to have declined 13.3% from the year-ago quarter’s reported figure.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>UFP Industries, Inc. (UFPI) : Free Stock Analysis Report
Century Communities, Inc. (CCS) : Free Stock Analysis Report
United Rentals, Inc. (URI) : Free Stock Analysis Report
Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
