M/I Homes Q2 net income drops on inventory charges

Overview

• U.S. homebuilder's Q2 revenue declined 9% yr/yr amid challenging market conditions

• Adjusted EPS for Q2 fell 32% yr/yr

• Company repurchased $50 mln of common stock in Q2

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• RECORD NEW CONTRACTS - Co reported a 15% increase in new contracts to a Q2 record, despite market challenges

• FEWER HOMES DELIVERED - Homes delivered fell 6% yr/yr, contributing to lower revenue

• INVENTORY CHARGES - Q2 pre-tax income included $4 mln in inventory charges

Company press release: ID:nPn4KMzVBa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "hold."

• Wall Street's median 12-month price target for M/I Homes Inc is $165.00, about 8.5% above its July 28 closing price of $152.14

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)