Howard Hughes Holdings Reports Strong Earnings, Surprising Investors with Major Growth
Howard Hughes Holdings (HHH) announced impressive quarterly earnings of $1.95 per share, surpassing the Zacks Consensus Estimate of $0.19 per share. This marks a significant improvement from a loss of $0.26 per share in the same quarter last year. These results exclude non-recurring items.
This earnings report resulted in an astounding surprise of 926.32%. Just a quarter ago, analysts predicted earnings of $0.28 per share, but HHH exceeded expectations by announcing earnings of $0.42, resulting in a 50% surprise.
Over the past year, HHH has exceeded consensus EPS estimates in three of the last four quarters.
As part of the Zacks Real Estate – Development industry, Howard Hughes Holdings reported quarterly revenue of $327.15 million for the period ending in September 2024, beating the Zacks Consensus Estimate by 17.06%. This is up from $268.66 million in revenues in the same quarter last year. The company has also surpassed consensus revenue estimates three times in the last four quarters.
The sustainability of the stock’s recent price fluctuations will largely depend on insights shared by management during the earnings call.
Since the start of the year, shares of Howard Hughes Holdings have declined by about 11.8%, while the S&P 500 Index has risen by 20.1%.
The Future for Howard Hughes Holdings
Given HHH’s underperformance compared to the market this year, investors are curious about the stock’s trajectory moving forward.
There are no straightforward answers, but examining the company’s earnings outlook can provide valuable insights. This not only includes current earnings expectations for upcoming quarters but also recent changes in these projections.
Research has consistently shown that stock movements are closely tied to revisions in earnings estimates. Investors can monitor these revisions themselves or utilize tools like the Zacks Rank, which has a proven history in identifying beneficial changes in earnings estimates.
Leading up to this earnings release, the trend in estimate revisions for Howard Hughes Holdings was positive. While revisions may shift following the recent results, the current consensus places the stock at a Zacks Rank #2 (Buy). This suggests that the shares are expected to outperform the market in the near future. A complete list of Zacks #1 Rank (Strong Buy) stocks is available here.
It will be noteworthy to observe how forecasts for future quarters and the current fiscal year evolve in the upcoming days. Currently, the consensus EPS estimate stands at $3.69 on expected revenues of $931.51 million for the next quarter and $3.28 on $1.7 billion in projected revenues for the fiscal year.
Investors also need to consider that the broader industry’s outlook can significantly influence a stock’s performance. The Zacks Industry Rank indicates that Real Estate – Development is in the top 32% of over 250 Zacks industries. Historical data shows that the top half of Zacks-ranked industries consistently outperform the lower half by more than a 2 to 1 ratio.
In another segment of the Zacks Finance sector, Eagle Point (ECC) is set to release its earnings results for the quarter ending in September 2024 on November 14.
This management investment company anticipates quarterly earnings of $0.28 per share, representing a 17.7% decrease from last year. The consensus EPS estimate has remained stable over the past month.
Eagle Point is expected to generate revenues of $43.76 million, reflecting an increase of 21.5% from the previous year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
