Smith Douglas Homes misses Q1 earnings estimates

ATLANTA – Smith Douglas Homes Corp. (NYSE: SDHC) reported its first-quarter earnings, revealing an earnings per share (EPS) of $0.33, which fell short of analyst expectations by $0.41.

The company’s revenue for the quarter was $189.2 million, marking a 13% increase from the same period last year. This growth in revenue, however, did not meet the anticipated analyst estimate.

The company, which recently went public, has shown a significant increase in various operational metrics compared to the first quarter of 2023. Net new orders saw a 15% rise to 765, and home closings increased by 13% to 566. The backlog of homes also grew by 19% to 1,110, with the sales value of these backlog homes jumping by 25% to $381.2 million. Additionally, the active community count surged by 49% to 70 by the end of the quarter.

Greg Bennett, Vice Chairman and Chief Executive Officer of Smith Douglas, expressed satisfaction with the quarter’s results, highlighting the achievement of sales and closings expectations and the maintenance of strong gross margins, which stood at 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, emphasized the company’s robust financial position, with nearly $33 million in cash and no borrowings under its $250 million unsecured credit facility, leading to a negative net debt-to-net book capitalization of (9.4)%.

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