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%.
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.
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