PulteGroup Earnings: Swings to a Profit, Topping Analysts’ Estimates
S&P 500 (NYSE:SPY) component PulteGroup Inc. (NYSE:PHM) climbed to a profit in the second quarter and beat Wall Street’s expectations in the process. PulteGroup is a publicly held holding company involved in the homebuilding and financial services businesses.
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PulteGroup Inc. Earnings Cheat Sheet
Results: Reported a profit of $42 million (11 cents per diluted share) in the quarter. PulteGroup Inc. had a net loss of $55 million or a loss 15 cents per share in the year-earlier quarter.
Revenue: Rose 15.3% to $1.07 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: PulteGroup Inc. beat the mean analyst estimate of 5 cents per share. It fell short of the average revenue estimate of $1.11 billion.
Quoting Management: “Our second quarter results showed significant gains as homebuilding operating margins expanded by more than 600 basis points, net income improved by $98 million and we continued to benefit from our strategic pricing strategies, improved construction efficiencies and further reductions in finished spec home inventory,” said Richard J. Dugas, Jr., Chairman, President and Chief Executive Officer of PulteGroup. “Ongoing success in the execution of our value creation initiatives, combined with a recovery in new home demand, contributed to gains in overall operating results allowing PulteGroup to realize second quarter profitability and post its strongest financial performance in over five years.”
Revenue has risen for the last four quarters. Revenue increased 9.4% to $881 million in the first quarter. The figure rose 6.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 8% in the third quarter of the last fiscal year from the year-ago quarter.
The company beat estimates last quarter after being in line with expectations in the first quarter with a loss of 3 cents per share.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 11 cents a share to 13 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from 23 cents per to share to 28 cents.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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