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American Homes 4 Rent reports Q3 earnings, surpasses revenue expectations

EditorPollock Mondal
Published 11/03/2023, 03:08 AM
© Reuters.

American Homes 4 Rent (NYSE:AMH) has announced its financial results for Q3 2023, revealing a significant year-on-year (YoY) revenue growth of 7.7% to $421.7 million. This figure outperformed the Zacks Consensus Estimate of $403.75 million by +4.45%. The Las Vegas-based company's earnings per share (EPS) stood at $0.41, mirroring the estimate but marking a substantial increase from last year's $0.14.

Core revenues for the same-home segment increased by +11.3% to $302.30 million, although this fell slightly short of the estimated $305.62 million. Tenant charge-backs grew by +6.2% to $65.84 million, surpassing the estimated $61.96 million.

Nonetheless, core revenues saw an overall rise of +8% to $355.86 million, beating its estimate, while Non-Same-Home core revenues experienced a dip of -7.8% to $53.56 million but still exceeded its estimate of $46.28 million.

The company also reported diluted net earnings per share at $0.20, outperforming the average estimate of $0.11 by five analysts.

In terms of third quarter funds from operations (FFO), AMH reported a total of $171 million or 41 cents per share, matching Wall Street's expectations. This figure includes a net income of $74.1 million with adjustments for depreciation and amortization.

Since the start of the year, AMH's stock has seen an 11% rise, closing at $33.49 on Thursday. This robust financial performance has been a significant factor in the company's stock appreciation.

InvestingPro Insights

Drawing from InvestingPro's real-time data, American Homes 4 Rent (AMH) boasts a market capitalization of 13.84 billion USD and a P/E ratio of 33.9. The company's revenue for the last twelve months as of Q2 2023 stands at 1565.8 million USD, showing a growth of 12.19%.

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In line with the InvestingPro Tips, AMH has shown high earnings quality, with free cash flow exceeding net income. This, coupled with a consistent increase in earnings per share, underscores its strong financial performance. Additionally, AMH has raised its dividend for 3 consecutive years, which is a positive sign for potential investors.

InvestingPro offers a plethora of additional tips, making it an invaluable tool for those looking to delve deeper into the financial landscape. For instance, with AMH, there are 9 more tips available on InvestingPro, offering a comprehensive understanding of the company's financial health.

By integrating this data, readers gain a more nuanced understanding of AMH's financial performance and potential future trajectory. This information can aid in making informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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