Core Viewpoint - M/I Homes, Inc. has announced a new share repurchase authorization allowing the company to buy back up to $250 million of its common shares, replacing the previous authorization which had $107 million remaining as of January 31, 2025 [1][2]. Company Overview - M/I Homes, Inc. is recognized as one of the leading homebuilders in the United States, with operations in various states including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee [3]. Share Repurchase Details - The share repurchase may occur through open market transactions, privately negotiated transactions, or other methods in compliance with applicable laws. The management will determine the timing and amount of purchases based on market conditions and other factors [2]. - The new authorization does not have an expiration date and can be modified, discontinued, or suspended at any time [2].

Company Overview - M/I Homes (MHO) is facing challenges similar to other builders due to persistently high mortgage rates, which are worsening affordability issues and putting pressure on housing demand [1] - The company is utilizing rate buy-downs as a strategy to maintain sales pace, although this approach is impacting profit margins [1] Industry Context - The current housing market is characterized by high mortgage rates that are significantly affecting demand and affordability for potential homebuyers [1] - Builders are increasingly relying on financial tools like rate buy-downs to sustain sales, indicating a competitive and challenging market environment [1]

Core Insights - M/I Homes reported revenue of $1.21 billion for the quarter ended December 2024, reflecting a year-over-year increase of 23.9% [1] - The company's EPS was $4.71, up from $3.66 in the same quarter last year, although it fell short of the consensus estimate of $4.83 by 2.48% [1] Financial Performance - Revenue exceeded the Zacks Consensus Estimate of $1.17 billion by 3.17% [1] - Homebuilding revenue was reported at $1.18 billion, surpassing the average estimate of $1.14 billion, marking a year-over-year increase of 23.7% [4] - Financial services revenue reached $28.51 million, slightly below the average estimate of $29.15 million, but showed a significant year-over-year growth of 44.8% [4] Key Metrics - Average home closing price was $490 thousand, closely aligning with the average estimate of $490.39 thousand [4] - Total homes delivered were 2,402, exceeding the average estimate of 2,338 [4] - New contracts totaled 1,759, slightly above the average estimate of 1,746 [4] - The average sales price of homes in backlog was $553 thousand, compared to the estimated $542.93 thousand [4] - The number of active communities was 219, below the average estimate of 225 [4] - Homes in backlog numbered 2,531, compared to the average estimate of 2,582 [4] - The aggregate sales value of homes in backlog was $1.40 billion, matching the average estimate [4] Stock Performance - Shares of M/I Homes returned +1.7% over the past month, in line with the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - M/I Homes reported quarterly earnings of $4.71 per share, missing the Zacks Consensus Estimate of $4.83 per share, but showing an increase from $3.66 per share a year ago, resulting in an earnings surprise of -2.48% [1] - The company posted revenues of $1.21 billion for the quarter, exceeding the Zacks Consensus Estimate by 3.17%, and up from $972.59 million year-over-year [2] - M/I Homes has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Earnings Outlook - The immediate price movement of M/I Homes' stock will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $4.73 on revenues of $1.1 billion, and for the current fiscal year, it is $20.42 on revenues of $4.68 billion [7] Industry Context - The Building Products - Home Builders industry, to which M/I Homes belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact M/I Homes' stock performance [5][6]

Financial Performance - For Q4 2024, M/I Homes reported net income of $133.5 million, a 27% increase from $105.3 million in Q4 2023, translating to $4.71 per diluted share compared to $3.66[5] - Revenue for Q4 2024 was $1.2 billion, up 24% from $972.6 million in Q4 2023, and total revenue for the year increased 12% to $4.5 billion[7] - Adjusted EBITDA for the twelve months ended December 31, 2024, reached $767.450 million, compared to $648.189 million for the same period in 2023, reflecting an increase of 18%[20] - Provision for income taxes for the twelve months ended December 31, 2024, was $169.883 million, up from $141.912 million in 2023[20] - Interest income - net for the twelve months ended December 31, 2024, was $(40.719) million, compared to $(30.030) million in 2023[20] Home Deliveries and Contracts - Homes delivered in Q4 2024 reached a record 2,402, a 19% increase from 2,019 in Q4 2023, while total homes delivered for the year increased 12% to 9,055[6] - New contracts in Q4 2024 increased by 11% to 1,759, with total new contracts for the year at 8,584, an 8% increase from 7,977 in 2023[6] - New contracts in Q4 2024 totaled 1,759, an 11% increase from 1,588 in Q4 2023[22] - The total backlog as of December 31, 2024, was 2,531 units with an average sales price of $553,000, compared to 3,002 units at an average sales price of $525,000 in 2023[22] - The Northern region saw a 25% increase in homes delivered in Q4 2024, totaling 1,064 compared to 848 in Q4 2023[22] - The Southern region experienced an 18% increase in new contracts in Q4 2024, totaling 1,052 compared to 889 in Q4 2023[22] Financial Health and Equity - Shareholders' equity reached a record $2.9 billion, a 17% increase from the previous year, with a book value per share of $109[7] - The company repurchased $50 million of stock in Q4 2024 and $176 million for the full year[7] - The homebuilding debt to capital ratio improved to 19% from 22% at the end of 2023, indicating stronger financial health[7] - M/I Homes ended 2024 with cash of $822 million and zero borrowings under its $650 million credit facility[9] Backlog and Sales Price - The average sales price of homes in backlog increased by 5% to $553,000, while the total backlog sales value decreased by 11% to $1.4 billion[8] - The cancellation rate for new contracts was 14% in Q4 2024, slightly up from 13% in Q4 2023[8] Land Position - The company’s land position as of December 31, 2024, included 23,836 lots owned and 28,320 lots under contract, compared to 24,374 lots owned and 21,286 lots under contract in 2023[22]

Company Performance - M/I Homes (MHO) closed at $137.68, with a daily increase of 0.48%, underperforming the S&P 500's gain of 1% [1] - Over the past month, M/I Homes shares appreciated by 0.45%, outperforming the Construction sector's decline of 3.14% and the S&P 500's decline of 2.14% [1] Upcoming Earnings - M/I Homes is set to disclose its earnings on January 29, 2025, with an anticipated EPS of $4.83, reflecting a 31.97% increase year-over-year [2] - The consensus estimate for revenue is $1.17 billion, representing a 20.12% increase from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for M/I Homes indicate a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system, which incorporates these estimate changes, suggests a viable rating system for stock performance [4] Valuation Metrics - M/I Homes has a Forward P/E ratio of 6.71, which is lower than the industry's average Forward P/E of 8.31, indicating a valuation discount [6] - The Building Products - Home Builders industry is currently ranked 204 in the Zacks Industry Rank, placing it in the bottom 19% of over 250 industries [6] Zacks Rank System - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with stocks rated 1 historically producing an average annual return of +25% since 1988 [5] - M/I Homes currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the past month [5]

Stock Performance - M/I Homes ended the recent trading session at $127 88, showing a +0 88% increase from the previous day's close, outperforming the S&P 500's gain of 0 16% [1] - Over the last month, M/I Homes shares have decreased by 18 28%, underperforming the Construction sector's loss of 11 33% and the S&P 500's loss of 2 7% [1] Earnings and Revenue Projections - M/I Homes is expected to report earnings of $4 83 per share on January 29, 2025, representing a year-over-year growth of 31 97% [2] - Revenue is projected to be $1 17 billion, indicating a 20 12% increase from the same quarter last year [2] Analyst Estimates and Revisions - Recent changes to analyst estimates for M/I Homes reflect optimism about the company's business and profitability [3] - The Zacks Consensus EPS estimate has remained unchanged over the last 30 days, with M/I Homes currently holding a Zacks Rank of 4 (Sell) [5] Valuation Metrics - M/I Homes has a Forward P/E ratio of 6 26, which is a discount compared to the industry average of 7 81 [6] - The Building Products - Home Builders industry, part of the Construction sector, holds a Zacks Industry Rank of 227, placing it in the bottom 10% of all industries [6] Industry Performance - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - M/I Homes closed at $131.95, reflecting a +0.96% change from the previous day, underperforming the S&P 500's gain of 1.26% [1] - The stock has decreased by 18.22% over the past month, while the Construction sector and S&P 500 have lost 12.76% and 2.82%, respectively [1] Group 2 - M/I Homes is set to report earnings on January 29, 2025, with an expected EPS of $4.83, indicating a 31.97% increase year-over-year [2] - The projected revenue for the upcoming earnings report is $1.17 billion, which represents a 20.12% increase from the same period last year [2] Group 3 - Recent changes in analyst estimates for M/I Homes are important as they reflect near-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, has a strong track record, with 1 rated stocks averaging a +25% annual return since 1988 [4][5] Group 4 - M/I Homes has a Forward P/E ratio of 6.4, which is lower than the industry average of 7.77, suggesting the company is trading at a discount [6] - The Building Products - Home Builders industry, part of the Construction sector, has a Zacks Industry Rank of 172, placing it in the bottom 32% of over 250 industries [6][7]

M/I Homes (MHO) closed the most recent trading day at $133.97, moving -1.74% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.11%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.Shares of the homebuilder have depreciated by 17.14% over the course of the past month, underperforming the Construction sector's loss of 10.86% and the S&P 500's gain of 0.4%.The investment community will be paying close attention to the earnings performance ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about M/I Homes (MHO) .M/I Homes currently has an average brokerage rec ...