Savvy Trades and Investments

[cliffvb]

MHO DHI These two homebuilders reported strong results and nice beats:
M/I Homes Q4 EPS $3.83 Beats $3.38 Estimate, Sales $1.05B Beat $982.05M Estimate. Record backlog in both units and sales. Book value up to $57.
Stock is flat at $53 after opening up.

DHI (largest US homebuilder) EPS improved to $3.17 from $2.14 in 1Q21, beating the consensus of $2.79.
Consolidated pre-tax profit margin improved 380 bps to 21.2%.
C0mpany also raised guidance for 2022 above analyst estimates. Similar story here- after being up 4% in premarket, stock is now flat.

Investors are avoiding the group on fears interest rate hikes will soon lead to a bust cycle despite the builders reporting they cannot keep up with demand and are limiting sales and raising prices and that they don't see even a 1.5% increase in mortgage rates hurting their markets. There is an estimated shortage of about 5 million homes caused by underbuilding for over a decade and peoples shift to more working from home.