Breaking News

PulteGroup (PHM) Stock Gains On Q1 Earnings & Revenue Beat

By Zacks Investment ResearchApr 22, 2019 11:00PM ET
PulteGroup (PHM) Stock Gains On Q1 Earnings & Revenue Beat
By Zacks Investment Research   |  Apr 22, 2019 11:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

PulteGroup Inc.’s (NYSE:PHM) first-quarter 2019 earnings and revenues surpassed the respective Zacks Consensus Estimate. Shares of the company gained more than 4% in the pre-market trading session following the earnings release. The recent declines in mortgage rates have helped homebuyers to return to the market after a period of slowing demand that began in second-half 2018.

Earnings per share came in at 59 cents, beating the consensus mark of 47 cents by 25.5%. The bottom line was in line with the year-ago figure.

Total revenues of $1.99 billion outpaced the consensus mark and the year-ago figure of $1.97 billion.

Segment Discussion

PulteGroup primarily operates through two business segments — Homebuilding and Financial Services.

Revenues at the Homebuilding segment were up 1.5% year over year to $1.95 billion.

Moreover, home sale revenues of $1.95 billion rose 2% year over year on higher average selling price or ASP. Land sale revenues totaled $3 million compared with $12.6 million a year ago.

The number of homes closed grew by just 0.2% year over year to 4,635. Notably, home closings remained subdued across most of its operating regions (barring Florida and Texas), namely Northeast, Southeast, Midwest and West. ASP of homes delivered was $421,000, up 2% year over year.

Importantly, the company’s backlog, which represents orders yet to be closed, was 10,550, down 6.2% year over year. In addition, potential housing revenues from backlog decreased 6.8% from the prior-year quarter to $4.62 billion.

New home orders decreased 6% year over year to 6,463 units in the quarter. Home orders were down across all its operating regions barring Texas. Value of new orders also decreased to $2.7 billion from $2.9 billion a year ago.

PulteGroup, Inc. Price, Consensus and EPS Surprise

PulteGroup, Inc. Price, Consensus and EPS Surprise | PulteGroup, Inc. Quote


Home sale gross margin was down 20 basis points (bps) year over year to 23.4% in the quarter. Furthermore, operating margin contracted 50 bps to 10.5%.

Homebuilding SG&A expenses, as a percentage of home sale revenues, were 13%, up 40 bps from the prior-year quarter.

Revenues from the Financial Services segment declined 4.5% year over year to $43.9 million. The segment generated pre-tax income of $12 million, down from $14 million a year ago. Competitive operating conditions continue to impact overall pricing. Mortgage capture rate in the quarter was 80%, up from 78% in the year-ago period.


As of Mar 31, 2019, cash and cash equivalents were $1.1 billion, down from $1.11 billion at the end of 2018.

In the reported quarter, PulteGroup repurchased 0.9 million shares for $25 million.

Currently, the company has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

NVR, Inc. (NYSE:NVR) reported first-quarter 2019 adjusted earnings of $47.64 per share, beating the Zacks Consensus Estimate of $33.59 by 41.8%. Also, the reported figure increased 21% from the prior-year quarter.

KB Home’s (NYSE:KBH) first-quarter fiscal 2019 earnings of 31 cents per share outpaced the Zacks Consensus Estimate of 27 cents by 14.8%. Total revenues of $811.5 million, however, missed the consensus mark of $829.3 million.

Lennar Corporation (NYSE:LEN) reported first-quarter fiscal 2019 (ended Feb 28, 2019) results, wherein earnings and revenues missed the respective Zacks Consensus Estimate by 1.3% and 5.3%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.

See 7 breakthrough stocks now>>

NVR, Inc. (NVR): Free Stock Analysis Report

PulteGroup, Inc. (PHM): Free Stock Analysis Report

KB Home (KBH): Free Stock Analysis Report

Lennar Corporation (LEN): Free Stock Analysis Report

Original post

Zacks Investment Research
PulteGroup (PHM) Stock Gains On Q1 Earnings & Revenue Beat
PulteGroup (PHM) Stock Gains On Q1 Earnings & Revenue Beat

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email