M/I Homes reports Q1 EPS $2.55, consensus $2.51

Reports Q1 revenue $921M, consensus $921.7M. Reports Q1 new contracts increased 3% to 2,350 and homes delivered decreased 3% to 1,914. Robert Schottenstein, CEO and President, commented, “In the face of challenging market conditions, we produced very solid first quarter results – led by increased new contracts, gross margins of 22%, pre-tax income of 10%, and a return on equity of 12%. We continue to believe that long-term housing demand is supported by favorable demographic trends and an undersupply of housing. We have a strong financial position with record shareholders’ equity of $3.2B, cash of $767M, and no borrowings under our $900M credit facility. With a strong balance sheet, a diverse product offering, and well-located communities, we believe we are well positioned to continue delivering solid results despite all of the market uncertainty.”