What happened
Shares of Century Communities (CCS 0.32%), one of the nation's top 10 homebuilders, jumped over 12% higher Thursday morning after the company released record first-quarter 2021 results.
So what
The first-quarter results were nothing short of impressive. Home sales revenue jumped 67% higher compared to the prior year to $959 million, easily topping analysts' estimates. Pre-tax earnings increased a staggering 284% to a company record of $152 million, or $3.00 per share, again easily topping analysts' estimates calling for $1.57 earnings per share. Home deliveries jumped 50% to a first-quarter record, while net new home contracts and homes in backlog jumped 45% and 58%, respectively, to company records.
"The positive momentum we are experiencing demonstrates burgeoning demand for our affordable, new homes, driven by favorable demographics, tight resale supply, and low interest rates, while underscoring the strength of our competitive positioning and national footprint across 28 high-growth markets," said Dale Francescon, chairman and co-CEO, in a press release.
Image source: Getty Images.
Now what
Management has done a great job over the past year amid the COVID-19 pandemic, and the shares have responded with a 284% increase. Beyond the rebounding stock price over the past year, management has positioned the company for continued growth by expanding its pipeline to over 57,000 lots and reducing its net homebuilding debt-to-net capital ratio to 19.9%, down from over 46.6% in the prior year's first quarter. Investors shouldn't be surprised if this isn't the last strong quarter from Century Communities this year.
