PulteGroup (PHM) Misses Earnings & Sales in Q3; Orders Up

Zacks

PulteGroup Inc. PHM is one of the leading homebuilders in the U.S. The company caters to all major customer segments: first-time, move-up and active adult. The brand portfolio under the segment includes Pulte move-up brand, Centex first-time brand and Del Webb active adult.

Pulte's large-scale business and geographic/product diversity, consistently improving profitability, commitment to drive higher returns while pursuing a more balanced capital allocation approach are encouraging. Moreover, though Pulte’s order trends remained light over the past two years, the order trend improved in the past 2-3 quarters.

Investors should also note that earnings estimate movement for PHM has been mixed for some time. However, PHM has a disappointing earnings history. The homebuilding company has posted two negative earnings surprise in the past four quarters, with an average negative surprise of -7.22%.

Currently, PHM has a Zacks Rank #3 (Hold), but that could definitely change following Pulte’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: PHM missed earnings. Our consensus earnings estimate called for EPS of $0.43/share, and the company reported EPS of $0.33 instead. Investors should note that these figures take out stock option expenses.

Revenues: PHM reported revenues of $1.51 billion. This missed our consensus estimate of $1.73 billion.

Key Stats to Note: New home orders grew 8% year over year.

Stock Price: Shares in-active in pre-market trading.

Check back later for our full write up on this PHM earnings report later.

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