M/I Homes Shares Build After Second-Quarter Profit Beats Estimates
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Investors on Wednesday moved into M/I Homes (MHO) - Get Report shares in a big way, after the Columbus, Ohio, homebuilder reported stronger-than-expected second-quarter earnings.
The stock finished 10% higher at $31.85. It traded Wednesday as high as $33.60, up 16%.
Net income was $1.08 a share vs. 96 cents in the year-earlier period. Shares outstanding dropped 3.5% to 28.1 million. Revenue climbed 12% to $623.7 million.
Two analysts who follow the company -- Jay McCanless at Wedbush and Peter Martin at JMP -- had estimated M/I would earn 86 cents a share and 82 cents, respectively.
M/I delivered 1,538 homes in the second quarter, up 9% from a year earlier. The average home price at closing edged up 0.5% to $389,000. New contracts rose 6% to 1,731.
Demand from buyers "[remained] steady as a result of continued low mortgage rates and favorable consumer confidence," Robert Schottenstein, president and chief executive, said in a statement.