Century Communities (NYSE:CCS) Releases Quarterly Earnings Results, Beats Estimates By $0.66 EPS

Century Communities (NYSE:CCS) posted its earnings results on Wednesday. The construction company reported $1.30 EPS for the quarter, beating the consensus estimate of $0.64 by $0.66, FiscalAI reports. The firm had revenue of $927.23 million during the quarter, compared to the consensus estimate of $857.23 million. Century Communities had a return on equity of 6.24% and a net margin of 3.31%.

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

CCS traded up $0.85 on Wednesday, reaching $64.65. The company had a trading volume of 226,078 shares, compared to its average volume of 304,477. The business has a 50 day simple moving average of $60.31 and a 200 day simple moving average of $61.78. The company has a market cap of $1.86 billion, a price-to-earnings ratio of 14.56 and a beta of 1.29. The company has a debt-to-equity ratio of 0.44, a quick ratio of 0.57 and a current ratio of 0.57. Century Communities has a 52-week low of $47.28 and a 52-week high of $76.00.

Century Communities Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Wednesday, May 27th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Wednesday, May 27th. Century Communities’s dividend payout ratio is 28.83%.

Hedge Funds Weigh In On Century Communities

A number of institutional investors have recently made changes to their positions in the stock. Invesco Ltd. lifted its holdings in shares of Century Communities by 23.8% during the 4th quarter. Invesco Ltd. now owns 180,382 shares of the construction company’s stock worth $10,706,000 after acquiring an additional 34,653 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its position in Century Communities by 18.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 6,557 shares of the construction company’s stock valued at $389,000 after purchasing an additional 1,044 shares in the last quarter. Wellington Management Group LLP lifted its stake in Century Communities by 9.3% during the fourth quarter. Wellington Management Group LLP now owns 1,631,055 shares of the construction company’s stock worth $96,803,000 after purchasing an additional 139,141 shares during the last quarter. SummitTX Capital L.P. purchased a new position in shares of Century Communities in the 4th quarter worth about $4,887,000. Finally, Numerai GP LLC boosted its holdings in shares of Century Communities by 8.2% in the 4th quarter. Numerai GP LLC now owns 6,762 shares of the construction company’s stock worth $401,000 after purchasing an additional 513 shares in the last quarter. Institutional investors own 99.54% of the company’s stock.

Analyst Ratings Changes

CCS has been the topic of a number of research reports. Zacks Research raised Century Communities from a “strong sell” rating to a “hold” rating in a research report on Monday, June 22nd. JPMorgan Chase & Co. decreased their price objective on Century Communities from $49.00 to $45.00 and set an “underweight” rating for the company in a report on Wednesday, April 29th. B. Riley Financial downgraded shares of Century Communities from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $75.00 to $64.00 in a research note on Thursday, April 23rd. Wall Street Zen raised shares of Century Communities from a “sell” rating to a “hold” rating in a research report on Saturday, June 20th. Finally, Zelman & Associates cut shares of Century Communities from a “neutral” rating to an “underperform” rating in a research note on Tuesday, July 7th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $67.00.

Century Communities Company Profile

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.