ATLANTA – Smith Douglas Homes Corp. (NYSE: SDHC) reported first-quarter earnings with earnings per share (EPS) of $0.33, which was $0.41 below analysts’ expectations.
The company’s revenue for the quarter was $189.2 million, up 13% from the same period last year. However, this revenue growth fell short of what analysts expected.
The company, which recently went public, showed significant growth in various operating metrics compared to the first quarter of 2023. Net new orders rose 15% to 765, and home closings increased 13% to 566. Also rose 19% to 1,110, with the value of sales of those outstanding homes jumping 25% to $381.2 million. Additionally, by the end of the quarter, the number of active communities grew by 49% to 70.
Greg Bennett, vice chairman and chief executive officer of Smith Douglas, expressed satisfaction with the quarter’s results, highlighting the achievement of sales and closing expectations and continued strong gross margin of 26.1%. Bennett also noted the company’s expansion into new markets, including Central Georgia and Chattanooga, Tennessee.
Russ Devendorf, executive vice president and chief financial officer, highlighted the company’s strong financial position, with nearly $33 million in cash and no borrowings under its $250 million unsecured credit facility, resulting in a negative net debt to net book capitalization ratio (9. 4). )%.
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