Home Deliveries and Sales - Home deliveries increased by 26.8% for the three months ended September 30, 2024, and by 20.3% for the nine months ended September 30, 2024[114]. - Home closings revenue rose by 25.7% for the three months ended September 30, 2024, and by 14.7% for the nine months ended September 30, 2024[115]. - Average sales price of homes delivered decreased by 0.8% for the three months ended September 30, 2024, and by 4.7% for the nine months ended September 30, 2024[114]. - Net new home orders increased by 11.3% for the three months ended September 30, 2024, and by 4.7% for the nine months ended September 30, 2024[117]. - Residential units revenue increased by $192.6 million, or 14.6%, driven by a 20.3% increase in home deliveries[133]. Backlog and Cancellations - Backlog revenue decreased by 6.5% due to an 11.7% decrease in backlog units, despite a 5.8% increase in the average sales price of backlog units[119]. - The cancellation rate for the three months ended September 30, 2024, was 8.5%, compared to 6.1% for the same period in 2023[119]. - Cancellation rate rose to 7.1% for the nine months ended September 30, 2024, compared to 6.5% in the prior year[131]. Financial Performance - Residential units gross margin decreased by 60 basis points to 32.7% for the three months ended September 30, 2024[121]. - Selling, general and administrative expenses as a percentage of revenue decreased by 0.2% for the three months ended September 30, 2024[122]. - Revenue from net new home orders decreased by $33.3 million, or 2.1%, to $1,539.5 million for the nine months ended September 30, 2024[130]. - Average selling price of net new home orders declined by 6.5% to $549.3 thousand[130]. - Residential units gross margin improved by 290 basis points to 33.6% for the nine months ended September 30, 2024[134]. Land and Lots - Land and lots revenue increased by 178.1% to $18.3 million for the nine months ended September 30, 2024[135]. - Total lots owned increased to 31,425 as of September 30, 2024, from 23,801 at the end of 2023[144]. - The company had earnest money deposits of $10.2 million at risk associated with contracts to purchase raw land and finished lots, representing 3,380 total lots[167]. Cash and Debt Management - Unrestricted cash and cash equivalents decreased to $80.1 million as of September 30, 2024, from $179.8 million at the end of 2023[145]. - Debt to total capitalization ratio was approximately 16.4% as of September 30, 2024[149]. - As of September 30, 2024, the net debt to total capitalization ratio was 12.5%, indicating a low leverage position[150]. - Total debt, net of debt issuance costs, was $297.3 million, with a net debt figure of $217.2 million after accounting for cash and cash equivalents of $80.1 million[152]. - For the nine months ended September 30, 2024, net cash used for operating activities was $3.0 million, a significant decrease from $232.7 million provided during the same period in 2023[154]. - The company generated $34.6 million from investing activities in the nine months ended September 30, 2024, compared to a net cash outflow of $10.0 million in the prior year[155]. - Net cash used in financing activities was $126.4 million for the nine months ended September 30, 2024, up from $69.8 million in the same period in 2023[156]. - As of September 30, 2024, the company maintained an interest coverage ratio of 33.16 to 1.0, well above the required minimum of 2.0 to 1.0[161]. - The Consolidated Tangible Net Worth was reported at $1,519.8 million as of September 30, 2024, exceeding the minimum requirement of approximately $960.0 million[161]. Market Trends - The homebuilding industry experiences seasonal fluctuations, with the highest new home order activity typically occurring in spring and summer[169]. - The company plans to prudently employ leverage to continue investing in land acquisition, development, and homebuilding activities[150].

Green Brick Partners, Inc. (GRBK) has been gearing up to announce its third-quarter 2024 earnings on Oct. 30, after the closing bell. The quarterly results are likely to reflect year-over-year growth in revenues and earnings per share (EPS).Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, this Plano, TX-based development real estate company reported an EPS of $2.32, which beat the Zacks Consensus Estimate by 31.82%. Results reflected a rise in total reve ...

The upcoming report from Green Brick Partners (GRBK) is expected to reveal quarterly earnings of $2.08 per share, indicating an increase of 33.3% compared to the year-ago period. Analysts forecast revenues of $540.01 million, representing an increase of 28.9% year over year. Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe. Prior to a c ...

Investors in Green Brick Partners, Inc. (GRBK) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $20 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

The best way to play the homebuilder space might not be with one of the larger players. It's been a strong environment for homebuilders, and there are some good reasons to believe the high margins and strong demand could last for years to come. In this video, Fool.com contributor Tyler Crowe discusses his favorite homebuilder stock, and it might not be one you've heard of yet. *Stock prices used were the morning prices of Aug. 22, 2024. The video was published on Aug. 24, 2024. ...

Core Viewpoint - Green Brick Partners (GRBK) is experiencing solid improvement in earnings estimates, which is likely to positively impact its stock price momentum [1][2]. Earnings Estimate Revisions - Current-quarter earnings are projected at $1.98 per share, reflecting a year-over-year increase of +26.92%, with a 5.6% rise in consensus estimates over the last 30 days [4]. - For the full year, earnings are expected to reach $7.91 per share, indicating a year-over-year change of +28.83%, with a 6.1% increase in consensus estimates during the same period [5]. Analyst Sentiment - There is strong agreement among analysts in revising earnings estimates upward for Green Brick Partners, contributing to a favorable outlook [3][6]. - The company currently holds a Zacks Rank 1 (Strong Buy), indicating a positive investment sentiment based on earnings estimate revisions [6]. Stock Performance - Green Brick Partners' stock has increased by 26.2% over the past four weeks, suggesting potential for further upside [7].

Core Viewpoint - Green Brick Partners (GRBK) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which are a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [4][6]. - For Green Brick Partners, the increase in earnings estimates reflects an improvement in the company's underlying business, likely leading to a higher stock price as investors respond positively to this trend [5][10]. Earnings Estimate Revisions - Green Brick Partners is projected to earn $7.91 per share for the fiscal year ending December 2024, representing a year-over-year increase of 28.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Green Brick Partners has risen by 6.1%, indicating a positive trend in analyst expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimates, with only the top 5% receiving a 'Strong Buy' rating, which positions Green Brick Partners favorably for potential market-beating returns [7][10]. - The Zacks Rank 1 stocks have historically generated an average annual return of +25% since 1988, underscoring the effectiveness of the rating system [7].

Group 1 - Green Brick Partners (GRBK) has shown strong year-to-date performance with a return of 33.2%, significantly outperforming the average return of 6.3% for Finance companies [4] - The Zacks Rank for Green Brick Partners is currently 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for GRBK's full-year earnings has increased by 6.1%, reflecting improving analyst sentiment [4] Group 2 - Green Brick Partners is part of the Real Estate - Development industry, which has an average loss of 11.9% this year, highlighting GRBK's superior performance within this sector [6] - The Bank of New York Mellon Corporation (BK) has also outperformed its sector with an 18% return since the beginning of the year, and it holds a Zacks Rank of 2 (Buy) [5][7] - The Real Estate - Development industry ranks 80 in the Zacks Industry Rank, while the Banks - Major Regional industry, which includes BK, ranks 35 and has seen a 10.3% increase this year [6][7]

Financial Data and Key Metrics - Record home closing revenue of $547 million, up 20% YoY, with 987 homes closed, a 26% increase [3][11] - Homebuilding gross margin reached a record 34.5%, up 320 basis points YoY and 110 basis points higher than the previous record [4][12] - Net income attributable to Green Brick grew 35.3% YoY, with diluted EPS increasing 38% to $4.14 [4][16] - Annualized return on equity for the first half of 2024 was 28.3%, and book value increased 26% YoY to $31.21 per share [4] - Total debt to total capital ratio was 17.7%, with a net debt to total capital ratio of 10.9% and a weighted average pay rate of 3.4% [5][17] Business Line Data and Key Metrics - Trophy, the entry-level and first-time move-up brand, closed 810 homes, representing 45% of total home closings and 34% of total home closing revenue [26] - Net new orders in Q2 were up 4.0% YoY to 855 homes, the highest level for any second quarter in company history [14] - Active selling communities grew 22% YoY to 105, with Trophy's community count increasing 41% YoY to 38 [15] - Cancellation rate remained low at 9.2%, one of the lowest among public homebuilding peers [15] Market Data and Key Metrics - Dallas-Fort Worth and Atlanta are the largest markets, with very few third-party lot developers, allowing the company to self-develop land and control lot deliveries [8][25] - Existing home inventory remains near historic lows, particularly in infill and infill-adjacent submarkets, where the company generates over 80% of its revenues [9] - The US housing market faces a systemic shortage of 4 million to 7 million units, driven by demographic shifts and an aging housing stock [9] Company Strategy and Industry Competition - The company prioritizes self-development of land, avoiding expensive premiums charged by third-party developers, which contributes to industry-leading gross margins [6][24] - Green Brick's land-light model contrasts with peers who face increasing finished lot costs, with the company's average developed lot cost expected to increase only 30 basis points annually [13] - The company announced the establishment of Green Brick Mortgage, a wholly owned mortgage company, to enhance control over the mortgage origination process and capture more earnings [10] Management Commentary on Operating Environment and Future Outlook - Management highlighted the company's ability to generate superior returns and growth due to its capital allocation and land strategy, positioning it for long-term success [20] - The company remains optimistic about long-term secular demographic shifts and rising demand, particularly if mortgage rates drop [20] - Green Brick is well-positioned for continued growth into 2025 and beyond, with a strong pipeline of land and lot inventory [26] Other Important Information - The company repurchased approximately 1.5% of its shares outstanding, valued at $38 million, during the second quarter [18] - Cycle times have stabilized at 5.4 months, a reduction of more than two months from Q2 2023, with further optimization expected [24] Q&A Session Summary Question: Can we expect the start pace to increase in the coming quarters? - The start pace will depend on sales performance, but the company expects cycle times to shorten over time, particularly with Trophy's faster delivery times [28][29] Question: Are incentives expected to impact gross margins in Q3? - Incentives are variable and depend on interest rates and seasonality, but the company has flexibility to adjust prices if needed [32][33] Question: What is the plan if the economy slows down? - The company does not plan to sell into the build-for-rent market and has sufficient margin cushion to maintain sales velocity even in a downturn [37][38] Question: Why were prices only raised in a third of communities? - Seasonality toward the end of the quarter impacted pricing ability [36]

Core Insights - Green Brick Partners (GRBK) reported revenue of $560.63 million for the quarter ended June 2024, marking a year-over-year increase of 22.9% and exceeding the Zacks Consensus Estimate of $489.73 million by 14.48% [1] - The company achieved an EPS of $2.32, up from $1.63 a year ago, surpassing the consensus EPS estimate of $1.76 by 31.82% [1] Financial Performance Metrics - Net New Home orders totaled 855, which is below the average estimate of 916 from two analysts [3] - New homes delivered were 987, exceeding the average estimate of 893 from two analysts [4] - Backlog units stood at 889, compared to the average estimate of 1,043 from two analysts [5] - Active selling communities at the end of the period numbered 105, surpassing the average estimate of 98 from two analysts [6] - Land and lots revenue was reported at $13.49 million, significantly higher than the estimated $3.50 million, reflecting a year-over-year increase of 631.7% [7] - Residential units revenue reached $547.14 million, exceeding the average estimate of $486.23 million and representing a year-over-year change of 20.4% [8] Stock Performance - Over the past month, shares of Green Brick Partners have returned +36.7%, while the Zacks S&P 500 composite experienced a -0.4% change [8] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [8]