Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?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 recommendati ...

M/I Homes (MHO) ended the recent trading session at $133.26, demonstrating a -1.24% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.24%. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq increased by 0.23%. Shares of the homebuilder have appreciated by 8.73% over the course of the past month, outperforming the Construction sector's gain of 4.09%, and the S&P 500's gain of 1.31%.The upcoming earnings release of M/I Homes wil ...

Core Points - M/I Homes, Inc. will announce its fourth quarter and year-end earnings on January 28, 2026, before the market opens [1] - The earnings announcement will be followed by a live webcast at 10:30 AM Eastern Time, accessible via the company's website [1] - The company is a leading homebuilder in the United States, with operations in multiple states including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee [2] Company Overview - M/I Homes, Inc. specializes in the construction of single-family homes [2] - The company operates in major metropolitan areas across the Midwest and Southeast regions of the United States [2]

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][6][11]. Brokerage Recommendation Summary - M/I Homes (MHO) has an average brokerage recommendation (ABR) of 1.40, indicating a consensus between Strong Buy and Buy, with 80% of the recommendations being Strong Buy from five brokerage firms [2][5]. - Despite the positive ABR, relying solely on this information for investment decisions may not be wise, as studies show limited success in brokerage recommendations guiding investors effectively [5][11]. Zacks Rank Comparison - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of near-term stock performance compared to ABR, which is influenced by brokerage recommendations [8][12]. - The Zacks Rank for M/I Homes is 3 (Hold), indicating a cautious outlook despite the positive ABR [15]. Earnings Estimate Insights - The Zacks Consensus Estimate for M/I Homes remains unchanged at $16.21, suggesting steady analyst views on the company's earnings prospects [14]. - The lack of change in the consensus estimate may lead to M/I Homes performing in line with the broader market in the near term [14][15].

Group 1 - The article emphasizes the focus on cash flow and the potential for value and growth in the oil and natural gas sector [1] - Crude Value Insights provides subscribers with access to a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [1] - The service includes live chat discussions about the sector, fostering a community for investors [1] Group 2 - A two-week free trial is offered to new subscribers, encouraging engagement with the oil and gas investment service [2]

Core Insights - M/I Homes has reported its Q3 2025 earnings, marking the fourth consecutive quarter of missing earnings expectations, leading to a 5% decline in stock price following the results [1] Financial Performance - The company has consistently underperformed in earnings, indicating potential challenges in meeting market expectations [1] Market Reaction - Following the earnings report, M/I Homes' stock price experienced a 5% drop, reflecting investor sentiment and market reaction to the disappointing results [1]

Financial Performance - Total revenue for Q3 2025 was $1.13 billion, with homebuilding revenue at $1.10 billion, reflecting a 1% decrease compared to Q3 2024[124] - Net income for Q3 2025 was $106.5 million, or $3.92 per diluted share, down 27% from $145.4 million, or $5.10 per diluted share, in Q3 2024[124] - Income before income taxes decreased by 26% to $139.8 million in Q3 2025, and by 21% to $446.0 million for the nine months[124] - Total revenue for Q3 2025 was $1,131.8 million, a slight decrease from $1,142.9 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, was $3,270.5 million, down from $3,299.4 million in the same period of 2024[138] - The operating income for Q3 2025 was $135.3 million, compared to $182.0 million in Q3 2024, and for the nine months ended September 30, 2025, it was $431.9 million, down from $542.1 million in the same period of 2024[138] Home Deliveries and Contracts - Homes delivered in Q3 2025 reached a record of 2,296 units, a 1% increase from the previous year, while total homes delivered for the nine months was 6,620, a slight decrease[126] - New contracts decreased by 6% to 1,908 in Q3 2025, and by 8% to 6,278 for the nine months[126] - The company’s backlog remains healthy, with an average sales price 2% higher than at the end of Q3 2024[132] Margins and Costs - Gross margin percentage for homebuilding operations declined by 360 basis points to 21.5% in Q3 2025, primarily due to a decrease in average sales price and increased lot costs[125] - The effective tax rate increased to 23.8% in Q3 2025 from 22.9% in Q3 2024[124] Regional Performance - In the Northern region, homes delivered decreased by 7% from 1,015 in Q3 2024 to 942 in Q3 2025, while average sales price increased by 6% to $517,000[150] - The Southern region experienced a 1% decrease in revenue from $614.4 million in Q3 2024 to $609.2 million in Q3 2025, attributed to an 8% decrease in average sales price[154] - Operating income in the Northern region increased by $1.9 million to $77.4 million in Q3 2025, driven by a $1.6 million improvement in gross margin[150] - The Southern region's operating income decreased by $51.2 million to $62.9 million in Q3 2025, primarily due to a $45.6 million decline in gross margin[154] Financial Services - Financial services segment revenue increased by 16% to $34.6 million in Q3 2025, driven by higher margins and an increase in loan originations[124] - Revenue from mortgage and title operations increased 16% to $34.6 million in Q3 2025 from $30.0 million in Q3 2024, driven by higher margins and a 9% increase in loan originations[157] - Financial services originated 1,848 loans valued at $749.8 million in Q3 2025, an increase from 1,695 loans valued at $683.1 million in Q3 2024[145] Shareholder Equity and Investments - Shareholders' equity reached a record high of $3.1 billion, an 11% increase from the previous year, with book value per share at $120[126] - The company invested $363.1 million in land acquisitions and $421.9 million in land development during the nine months ended September 30, 2025, compared to $365.6 million and $444.7 million in the same period of 2024[134] Debt and Liquidity - The company had $734.2 million in cash and cash equivalents as of September 30, 2025, a decrease of $87.4 million from December 31, 2024, primarily due to timing of land spend and decline in home deliveries[176] - As of September 30, 2025, the company's homebuilding debt to capital ratio was 18%, down from 19% at the end of 2024, indicating improved leverage management[190] - The company had $2.47 billion available for additional senior debt under its Credit Facility as of September 30, 2025, with no borrowings outstanding[193] Market Conditions and Strategies - The company anticipates mortgage rates moving closer to 6%, which could improve affordability and stimulate buyer activity[131] - The company is taking proactive measures to manage overhead and land investments to support affordability and stimulate demand[130] - M/I Homes, Inc. plans to offer interest rate buydowns to potential homebuyers to address elevated mortgage interest rates, which currently range between 6% and 7%[220] Other Financial Metrics - Total assets as of September 30, 2025, were $4,769.5 million, an increase from $4,549.8 million at December 31, 2024[140] - The total liabilities as of September 30, 2025, were $1,338,213 thousand, compared to $1,284,004 thousand as of December 31, 2024[212] - The company maintained a Consolidated Tangible Net Worth of $3,052.9 million, significantly above the required minimum of $2,139.4 million as of September 30, 2025[198]

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article emphasizes that users may be blocked from proceeding if an ad-blocker is enabled [1]

Financial Data and Key Metrics Changes - The company generated $140 million of pre-tax income, down 26% from last year's record third quarter results, with a pre-tax income percentage of 12% of revenue and gross margins of 24% [3][4] - Total revenue for the third quarter decreased by 1% to $1.1 billion, with an average closing price of $477,000, a 2% decrease from last year's average of $489,000 [4][11] - Earnings per diluted share decreased to $3.92 from $5.10 last year, with a book value per share of $120, up 15% from a year ago [13][8] Business Line Data and Key Metrics Changes - The company closed a record 2,296 homes in the third quarter, a 1% increase compared to the previous year, but sold 1,908 homes, down 6% from 2024's third quarter [4][11] - The Smart Series, the most affordable line of homes, comprised about 52% of total sales, up from about 50% a year ago [5] - The mortgage and title operations achieved pre-tax income of $16.6 million, an increase of 28% from $12.9 million in the previous year, with revenue increasing 16% to a record $34.6 million [15][16] Market Data and Key Metrics Changes - New contracts in the northern region decreased by 17%, while new contracts in the southern region increased by 3% compared to last year's third quarter [7] - Deliveries in the southern region increased by 8%, while deliveries in the northern region decreased by 7% from a year ago, with 59% of deliveries coming from the southern region [7] - The company ended the quarter with 233 communities, a 7% increase from 217 a year ago, with the northern region up 9% and the southern region up 6% [10] Company Strategy and Development Direction - The company plans to continue using mortgage rate buy-downs to incentivize sales and drive traffic, which has been a significant factor in maintaining sales performance [3][24] - The company remains optimistic about the business, believing the industry will benefit from the undersupply of homes and growing household formations [9] - The company aims to grow its community count by about 5% from 2023, with a strong land position and a total of approximately 50,700 owned and controlled lots [8][9] Management's Comments on Operating Environment and Future Outlook - Management described the current housing market conditions as "just okay," with challenges in demand and market conditions [3] - The management expressed confidence in the company's strong balance sheet and liquidity, which provides flexibility as market conditions evolve [9] - The management noted that while there are pressures on margins, they believe they are closer to the bottom than before, with expectations for community count growth in 2026 [42][89] Other Important Information - The company ended the quarter with an all-time record $3.1 billion of equity, resulting in a strong debt-to-capital ratio of 18%, down from 20% last year [8] - The company spent $115 million on land purchases and $181 million on land development during the third quarter [18] - The company has repurchased 15% of its outstanding shares since the start of 2022, with $100 million remaining under the current board authorization [18] Q&A Session Summary Question: Discussion on orders and seasonality - Management acknowledged the unpredictable market conditions and emphasized the importance of driving traffic through mortgage rate buy-downs [22][24] Question: Gross margin trends in different regions - Management noted that demand and margins are holding up better in Orlando compared to Tampa and Sarasota, with varying performance across Texas [27][28] Question: Comments on government discussions regarding housing - Management stated they have not had discussions with the administration but noted the importance of addressing local zoning regulations to improve housing affordability [36][37] Question: Insights on gross and SG&A margins - Management indicated that they are closer to the bottom on margins and discussed the pressures from higher land costs and the need for careful management of selling expenses [42][45] Question: Regional order growth trends - Management expressed satisfaction with the performance in the Midwest markets, despite some challenges in Florida and Texas [54][56] Question: Thoughts on M&A opportunities - Management stated there are no current plans for M&A but would consider opportunities that align with their growth strategy [82][83] Question: Community count growth expectations for 2026 - Management confirmed expectations for community count growth next year, aiming for a 5% to 10% increase annually [89][90]

Financial Data and Key Metrics Changes - The company generated $140 million of pre-tax income, down 26% from last year's record third quarter results, with a pre-tax income percentage of 12% of revenue and gross margins of 24% [3][4] - Total revenue for the third quarter decreased by 1% to $1.1 billion, with an average closing price of $477,000, a 2% decrease from last year's average of $489,000 [4][11] - Earnings per diluted share decreased to $3.92 from $5.10 last year, with a book value per share of $120, up 15% from a year ago [13][8] Business Line Data and Key Metrics Changes - The company closed a record 2,296 homes in the third quarter, a 1% increase compared to the previous year, but sold 1,908 homes, down 6% from 2,023 homes sold in the same quarter last year [4][11] - The Smart Series, the most affordable line of homes, comprised about 52% of total sales, up from 50% a year ago [5] - The mortgage and title operations achieved pre-tax income of $16.6 million, an increase of 28% from $12.9 million in the previous year, with revenue increasing 16% to a record $34.6 million [15][16] Market Data and Key Metrics Changes - New contracts in the northern region decreased by 17%, while new contracts in the southern region increased by 3% compared to last year's third quarter [7] - Deliveries in the southern region increased by 8%, while deliveries in the northern region decreased by 7% from a year ago, with 59% of deliveries coming from the southern region [7] - The company ended the quarter with 233 communities, up 7% from 217 a year ago, with a community count growth estimate of about 5% for 2025 [10][11] Company Strategy and Development Direction - The company plans to continue using mortgage rate buy-downs to incentivize sales and drive traffic, which has been a significant factor in maintaining sales performance [3][24] - The company remains optimistic about the business, believing the industry will benefit from the undersupply of homes and growing household formations [9] - The company is focused on maintaining a strong balance sheet and liquidity while selectively repurchasing shares [18][66] Management's Comments on Operating Environment and Future Outlook - Management described the current housing market conditions as "just okay," with ongoing challenges in demand and market volatility [3][24] - The company expects strong full-year results in specific markets such as Columbus, Chicago, Dallas, and Minneapolis, despite some regional challenges [7][56] - Management highlighted the importance of local zoning regulations as a significant impediment to housing affordability and volume levels [37] Other Important Information - The company ended the quarter with an all-time record $3.1 billion of equity and a debt-to-capital ratio of 18%, down from 20% last year [8][9] - The company spent $297 million on land purchases and development during the quarter, with a focus on maintaining a strong land position [17][18] Q&A Session Summary Question: Discussion on orders and seasonality - Management acknowledged the unpredictable market conditions and emphasized the importance of using mortgage rate buy-downs to drive sales [22][24] Question: Gross margin trends in different regions - Management noted that demand and margins vary significantly across different markets, with Orlando performing better than Tampa and Sarasota [27][28] Question: Comments on administration discussions regarding home builders - Management stated they have not had discussions with the administration but are aware of ongoing conversations about improving housing affordability [36][37] Question: Insights on gross and SG&A margins - Management indicated that margins are stabilizing, with pressures from higher land costs and increased sales commissions [42][45] Question: Regional order growth trends - Management expressed satisfaction with the performance in the Midwest, particularly in Columbus and Chicago, despite some challenges in Florida and Texas [54][56] Question: Thoughts on M&A opportunities - Management stated there are no current M&A plans but would consider opportunities that align with their growth strategy [82][83] Question: Community count growth for 2026 - Management expects community count growth next year, targeting a 5% to 10% increase annually [89][90]