Century Communities, Inc. (CCS) stock prices were up by a marginal 0.47% as of market close on April 28th, 2021, bringing the price per share up to USD$66.27 at the end of the trading day. CCS stock was up 7.14% to $71 in premarket trading today as of this writing.
Impressive Net Income Reports
CCS reported a net income of USD$101.7 million for the first quarter of 2021, indicating a staggering 289% increase from the USD$26.1 million reported in the fourth quarter of 2020. Accordingly, net income per diluted share was USD$3.00 for Q1 2021, up from the USD$0.78 reported for Q4 2020. Income before the deduction of taxes was USD$131 million for Q1 2021, representing a 13% margin, up from the 5.7% margin on USD$34.1 million being reported in Q4 2020 before the deduction of taxes.
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Meeting Increased Demand
Q1 2021 also saw a 67% increase in revenue from home sales at USD$959.3 million, as compared to the USD$572.7 million reported for Q4 2020. This significant increase is due largely to the increase of 50% in the delivery of 2797 homes in Q1 2021 compared to 1864 delivered in the prior-year quarter. The average sale price of home deliveries was also up from USD$307,200 in Q4 2020 to USD$343,000 in Q1 2021, further helping boost revenues. The increase in the average sale price of home deliveries was primarily a result of increased demand in conjunction with the appreciation of home prices across the company’s markets.
Excess Demand Signals Fruitful Market
The end of Q1 2021 saw the breaking of a company record when CCS reported having 4097 homes in backlog, representing a backlog dollar value of USD$1.6 billion. That translates into a 58% increase in backlogged homes and an 83% increase in the backlog dollar value. With Q4 2020 having reported 2388 net new home contracts, Q1 2021 saw a 45% increase to 3455 homes.
Solid Liquidity Position
At the end of the quarter ended March 31st, 2021 CCS reported having USD$1.4 billion in stockholders’ equity, USD$557.1 million in cash, and USD$1.2 billion of total liquidity. The ratio of net homebuilding debt to net capital saw a significant improvement from the 46.6% reported in Q1 2020 to the 19.9% reported in Q1 2021. CCS has since bumped up its revenue guidance for the upcoming year. The company anticipates revenue reports around USD$4 billion, with home deliveries of 11,750.
Future Outlook for CCS
With such stellar financial reports indicating consistent growth and a sustained uptrend in market demand, CCS is poised to capitalize on its sustained momentum. Current and prospective investors are hopeful that the company will continue to leverage its resources in an active market to maintain its quarter-over-quarter and year-over-year improvements, thus increasing shareholder value in the long run.