Howard Hughes Intrinsic Value – Howard Hughes Beats Earnings Estimates Despite Missed Revenue Target
May 9, 2023
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Howard Hughes ($NYSE:HHC) Corp (HHC) has beaten its earnings estimates despite missing its revenue target.
However, the company fell short of its revenue estimation of $199.31M, recording a total revenue of $196.28M. HHC is one of the most prominent real estate companies in the United States and is based in Dallas, Texas. It is engaged in both residential and commercial real estate development, as well as in the development of master-planned communities throughout the country. It is known for its high-end products and services in the residential space, which includes a wide range of apartments, townhomes, and single-family homes. Despite the missed target, Howard Hughes Corp’s results have still been impressive given the current economic climate. This indicates that the company has managed to adjust to the changing market conditions and continue to deliver strong financial results. It also suggests that the company’s strategy of focusing on the residential segment, which has proven to be more resilient during this period, is helping it maintain its margins.
Earnings
In its earning report of FY2022 Q4 as of December 31 2022, HOWARD HUGHES reported total revenues of 482.0M USD, 52.75M USD in net income. Although total revenue decreased by 40.2%, net income decreased by 53.6% compared to the previous year. Despite these decreases, HOWARD HUGHES has seen a remarkable growth of over 213.7M USD in total revenue over the last three years, beating earnings estimates.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Howard Hughes. More…
| Total Revenues | Net Income | Net Margin |
| 1.61k | 184.53 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Howard Hughes. More…
| Operations | Investing | Financing |
| 325.25 | -220.69 | -222.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Howard Hughes. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.6k | 6k | 71.09 |
Key Ratios Snapshot
Some of the financial key ratios for Howard Hughes are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.3% | 38.4% | 22.1% |
| FCF Margin | ROE | ROA |
| 20.1% | 6.3% | 2.3% |
Stock Price
On Monday, HOWARD HUGHES stock opened at $76.0 and closed at $76.7, up by 0.1% from prior closing price of 76.6. This was largely due to cost savings initiatives and lower costs of goods sold. Despite missing its revenue target, HOWARD HUGHES was able to offset this with more aggressive cost cutting measures, which helped it to boost its bottom line.
This strong performance in the face of an uncertain economic climate was welcomed by investors and caused the stock to close slightly up from the previous day. In conclusion, HOWARD HUGHES was able to demonstrate that its cost-saving measures are working and that it is in a good position to weather any economic downturns. Live Quote…
Analysis – Howard Hughes Intrinsic Value
At GoodWhale, we strive to provide our clients with the most comprehensive analysis of Howard Hughes‘s wellbeing. Our proprietary Valuation Line estimated the fair value of HOWARD HUGHES shares to be around $131.4. However, we have observed that HOWARD HUGHES stock is currently being traded at the price of $76.7, which is far below its fair value. This implies that HOWARD HUGHES shares are undervalued by 41.6%. More…
Peers
It was created on November 15, 2010, when General Growth Properties spun off its subsidiary, The Howard Hughes Corporation. The new company is traded on the New York Stock Exchange under the ticker symbol HHC. The Howard Hughes Corporation owns, operates, and develops commercial, residential, and mixed-use real estate properties in the United States. Eco Depot Inc is a publicly traded Canadian home improvement retailer that operates stores in Canada and the United States. The company was founded in 1986, and is headquartered in Boucherville, Quebec. Eco Depot Inc has more than 400 stores, and employs more than 27,000 people. Gould Investors LP is a privately held investment firm that manages a portfolio of investments in public and private companies. Gould Investors LP was founded in 1977, and is headquartered in New York, New York. Nexity SA is a French real estate company that focuses on the development, construction, and management of residential and commercial properties. Nexity SA was founded in 1948, and is headquartered in Paris, France.
– Eco Depot Inc ($OTCPK:ECDP)
Eco Depot Inc is a company that provides environmental solutions. It offers products and services that help businesses and individuals protect the environment. The company has a market cap of 1.52M as of 2022.
– Gould Investors LP ($OTCPK:GDVTZ)
Nexity SA is a French real estate company with a market cap of 1.29B as of 2022. The company has a Return on Equity of 8.57%. Nexity SA is involved in the development, sale, and management of real estate assets in France. The company also provides real estate services, such as property management, rental management, and construction management.
Summary
Howard Hughes Corporation reported their GAAP earnings per share (EPS) of -$0.46, which beat analyst estimates by $0.20. This difference highlights the importance of understanding and accurately predicting revenue trends in order to accurately assess a company’s financial performance. Investors should closely observe Howard Hughes’ ability to generate revenue, as well as their ability to control costs and deliver on their projections.
Additionally, investors should keep an eye on the company’s ability to secure financing and access capital markets, as well as their potential to enter into or exit from strategic partnerships. All of these factors should be taken into account when analyzing Howard Hughes’ financial performance and making decisions about investments.
