TRI Pointe Group Inc (NYSE:TPH) reported 3Q16 financial and operational results that showed a negative trend from the year-ago quarter. But management expressed satisfaction anyway, saying the results came within guidance and offered hope that the future is bright. However, investors saw the results differently, dumping TRI Pointe shares and leaving the stock plunging 7.5%.

Earnings ease from a year ago

TRI Pointe posted EPS of $0.22 in the latest quarter, a decline from EPS of $0.31 in a year ago. New home orders fell 6% YoY to 932 in the latest quarter. TRI Pointe further said active selling communities eased 1% YoY to 119.

The company saw an uptick in new home orders cancellation, which stood at 17% in the latest quarter compared to the year-ago quarter.

In a further show of difficult times, TRI Pointe reported an 8% YoY decrease in backlog units to 1,711 homes. That led to a 14% YoY drop in backlog value to $950.2 million.

Revenue falls 10%

Home sales revenue at TRI Pointe pulled back 10% YoY to $578.7 million. New home deliveries in the quarter also eased 10% YoY to 1,019 homes. Average sales price of homes was almost steady at $568,000, down 1% YoY.

Expenses surge

TRI Pointe’s SG&A expenses rose to 10.9% of home sales revenue. SG&A expenses were only 8.8% of home sales revenue in the same period last year.

Stock repurchases

TRI Pointe was left with a cash balance of $128.7 million at the end of 3Q16 after spending $10.4 million on stock buybacks during the quarter. The company doesn’t seem to face liquidity problems because in addition to the cash balance, it has $402.7 million under a revolving credit facility.

4Q16 outlook

TRI Pointe is looking to deliver 85% of the backlog from 3Q16. The company also anticipates easing of expenses as a percentage of sales in the current quarter.

As part of the effort to boost home sales, TRI Pointe recently organized a grand opening celebration at Glenmont MetroCentre through its unit Winchester Homes.