Looking back on home builders stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including LGI Homes (NASDAQ: LGIH) and its peers.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 13 home builders stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.1%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.6% since the latest earnings results.

LGI Homes (NASDAQ: LGIH)

Based in Texas, LGI Homes (NASDAQ: LGIH) is a homebuilding company specializing in constructing affordable, entry-level single-family homes in desirable communities across the United States.

LGI Homes reported revenues of $474 million, down 15% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

“Our team delivered a solid finish to the year and further strengthened the foundation that supports our long-term growth plans,” said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes.

Unsurprisingly, the stock is down 32.2% since reporting and currently trades at $41.27.

Read our full report on LGI Homes here, it’s free.

Best Q4: Taylor Morrison Home (NYSE: TMHC)

Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE: TMHC) builds single family homes and communities across the United States.

Taylor Morrison Home reported revenues of $2.1 billion, down 10.9% year on year, outperforming analysts’ expectations by 7.2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $59.23.

Is now the time to buy Taylor Morrison Home? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Meritage Homes (NYSE: MTH)

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE: MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Meritage Homes reported revenues of $1.44 billion, down 11.5% year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 8.8% since the results and currently trades at $63.09.

Read our full analysis of Meritage Homes’s results here.

D.R. Horton (NYSE: DHI)

One of the largest homebuilding companies in the U.S., D.R. Horton (NYSE: DHI) builds a variety of new construction homes across multiple markets.

D.R. Horton reported revenues of $6.89 billion, down 9.5% year on year. This number surpassed analysts’ expectations by 3.4%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

D.R. Horton scored the highest full-year guidance raise among its peers. The stock is down 10% since reporting and currently trades at $140.30.

Read our full, actionable report on D.R. Horton here, it’s free.

PulteGroup (NYSE: PHM)

Having delivered over 850,000 homes since its founding in 1950, PulteGroup (NYSE: PHM) is one of America's largest homebuilders, constructing single-family homes, townhouses, and condominiums for first-time, move-up, and active adult buyers across 46 markets in 25 states.

PulteGroup reported revenues of $4.61 billion, down 6.3% year on year. This result beat analysts’ expectations by 6%. It was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

The stock is down 2.4% since reporting and currently trades at $120.36.

Read our full, actionable report on PulteGroup here, it’s free.

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