CCS - Century Communities posts Q4 earnings topper but forecast is conservative

Century Communities ( NYSE: CCS ) on Wednesday posted Q4 results that topped estimates , but issued conservative outlook given the uncertainty in the homebuilding space.

The homebuilder expects deliveries of 7K-8K homes in 2023 vs. ~10.6K homes in 2022. Home sales revenue is projected to be $2.6B-$3.1B, down ~30%-41% Y/Y.

"While there is still a high degree of uncertainty in the homebuilding industry and the economy, we have begun to see mortgage rates stabilizing, input costs recede and homebuyer traffic on sites increase," said CFO David Messenger.

Century Communities ( CCS ) reported Q4 adj. EPS of $2.71 vs. $4.78, while revenue slipped 0.8% Y/Y to $1.2B. Both metrics topped expectations. It delivered 2.9K homes in Q4, the second highest level ever.

The homebuilder had gross and net new home contracts of 2K and ~1.3K, respectively. At the end of Q4, there were 1.8K homes in backlog, representing $671.4M of backlog dollar value.

"We continued to see an improvement in direct costs in Q4 and expect further gains in 2023, which will allow homes being started now and in the future to earn improved margins," said co-CEO Dale Francescon.

Earlier, Wedbush is bullish on four homebuilder stocks for 2023 .

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