Overview

* Smith Douglas Q3 home closing revenue falls 6% yr/yr, with gross margin declining to 21%

* Net new home orders rise 15% in Q3, showing growth in demand

* Active community count up 32% to 98, reflecting expansion efforts

Outlook

* Company did not provide specific financial guidance for future quarters

Result Drivers

* EXPANSION EFFORTS - Co increased active community count by 32% to 98, reflecting expansion in key markets

* ASSET-LIGHT MODEL - Co continues to focus on being asset-light with efficient construction cycle times, per CEO Greg Bennett

* INCREASED DEMAND - Net new home orders rose 15% to 690, indicating growth in demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $16.21

Income mln

Q3 $17.23

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

* Wall Street's median 12-month price target for Smith Douglas Homes Corp ( SDHC ) is $17.00, about 2.4% below its November 4 closing price of $17.41

* The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)