Century Communities (NYSE:CCS) Releases Earnings Results, Beats Estimates By $0.67 EPS

Century Communities (NYSE:CCS) posted its quarterly earnings results on Wednesday. The construction company reported $1.30 EPS for the quarter, beating the consensus estimate of $0.63 by $0.67, FiscalAI reports. Century Communities had a net margin of 3.31% and a return on equity of 6.24%. The business had revenue of $927.23 million during the quarter, compared to analyst estimates of $857.23 million. During the same period in the previous year, the business posted $1.37 EPS. The company’s quarterly revenue was down 8.1% on a year-over-year basis.

Here are the key takeaways from Century Communities’ conference call:

• Century Communities posted strong second-quarter results, with EPS of $1.26 up 11% year over year and 50% sequentially, and deliveries of 2,506 homes beating guidance. Management said improved absorption and tighter cost control helped drive the beat.
• Margins improved in the quarter, as adjusted gross margin rose to 20% and direct construction costs fell 5% sequentially. The company credited lower incentives, better operating efficiency, and growing use of ARMs for supporting pricing power.
• Demand trends were encouraging, with net orders up 3% year over year and traffic higher across the quarter. Cancellation rates also declined, suggesting buyers remain committed once they sign.
• The company raised full-year 2026 guidance, now expecting 9,750 to 10,500 home deliveries and $3.5 billion to $3.8 billion in home sales revenue. Management also guided third-quarter deliveries to 2,500 to 2,700 homes.
• Century ended the quarter with a record 330 communities, more than 60,000 owned and controlled lots, and book value per share of $90.24. It also repurchased 3% of shares year to date at a significant discount to book value while maintaining its dividend.

Century Communities Price Performance

Shares of CCS opened at $64.65 on Thursday. Century Communities has a one year low of $47.28 and a one year high of $76.00. The stock’s fifty day moving average is $60.56 and its 200-day moving average is $61.81. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.57 and a current ratio of 0.57. The firm has a market capitalization of $1.86 billion, a price-to-earnings ratio of 14.56 and a beta of 1.29.

Century Communities Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th were issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Wednesday, May 27th. Century Communities’s dividend payout ratio (DPR) is 28.83%.

Hedge Funds Weigh In On Century Communities

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Parallel Advisors LLC raised its position in shares of Century Communities by 207.6% during the 4th quarter. Parallel Advisors LLC now owns 609 shares of the construction company’s stock worth $36,000 after buying an additional 411 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Century Communities by 175.5% in the second quarter. EverSource Wealth Advisors LLC now owns 730 shares of the construction company’s stock valued at $41,000 after acquiring an additional 465 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new position in shares of Century Communities during the fourth quarter valued at approximately $70,000. Jones Financial Companies Lllp raised its holdings in Century Communities by 1,513.3% during the first quarter. Jones Financial Companies Lllp now owns 1,210 shares of the construction company’s stock worth $81,000 after purchasing an additional 1,135 shares in the last quarter. Finally, Lazard Asset Management LLC raised its holdings in Century Communities by 7.8% during the second quarter. Lazard Asset Management LLC now owns 2,405 shares of the construction company’s stock worth $134,000 after purchasing an additional 173 shares in the last quarter. Institutional investors own 99.54% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Weiss Ratings lowered shares of Century Communities from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, May 13th. Zelman & Associates lowered Century Communities from a “neutral” rating to an “underperform” rating in a report on Tuesday, July 7th. Wall Street Zen upgraded Century Communities from a “sell” rating to a “hold” rating in a research report on Saturday, June 20th. Zacks Research upgraded Century Communities from a “strong sell” rating to a “hold” rating in a research report on Monday, June 22nd. Finally, JPMorgan Chase & Co. cut their price target on Century Communities from $49.00 to $45.00 and set an “underweight” rating on the stock in a report on Wednesday, April 29th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $67.00.

About Century Communities

Century Communities, Inc is a national homebuilder and land developer headquartered in Greenwood Village, Colorado. The company is engaged in the acquisition, development, construction and sale of single- and multi-family residential homes, offering a range of floor plans and design options to homebuyers. In addition to its core homebuilding activities, Century Communities provides ancillary services such as mortgage financing, title and closing services, and insurance products through its wholly owned subsidiaries, aiming to deliver a comprehensive homebuying experience.

Founded in 2009, Century Communities rapidly expanded through both organic growth and strategic land acquisitions, positioning itself in high-growth markets across the United States.