Pulte climbs on Q2 earnings and revenue beat, boosted by increased closings
By James Rogers
PulteGroup shares are up 1.1% in premarket trades.
PulteGroup Inc. shares rose in pre-market trades Tuesday after the home builder's second-quarter results topped earnings and revenue estimates, with profits boosted by increases in closings and average sales price.
The company's second-quarter profit rose to $809 million, or $3.83 a share, from $720.4 million, or $3.21 a share, in the prior year's quarter. Net income for the quarter includes a $52 million pre-tax, or $0.19 per share, insurance benefit, and a $13 million, or $0.06 per share, benefit related to the favorable resolution of certain state tax matters. Analysts surveyed by FactSet were looking for earnings of $3.27 a share.
Increases in closings, average sales price and gross margin drove PulteGroup's earnings increase, according to the company's Chief Executive Ryan Marshall, in a statement. PulteGroup's (PHM) closings increased 8% to 8,097 homes and average sales price Increased 2% to $549,000. Home sale gross margin increased 30 basis points to 29.9%.
Related: Homebuilder ETFs surge as investors await Fed rate cuts
Total second-quarter revenue was $4.6 billion, up from $4.2 billion in the same period last year. Analysts surveyed by FactSet were looking for revenue of $4.49 billion.
"While interest rate movements can impact short-term homebuying demand, long-term market dynamics continue to benefit from a structural shortage of homes caused by years of underbuilding," said the company's Chief Executive Ryan Marshall in a statement.
PulteGroup shares rose 1.1% in premarket trades.
Related: Housing starts post bigger-than-expected increase in June
At the end of the quarter, PulteGroup's backlog was 12,982 homes with a value of $8.1 billion, from 13,558 homes with a value of $8.2 billion at the end of the same period last year.
In the second quarter PulteGroup received net new orders for 7,649 homes, compared with 7,947 homes in the prior year's quarter.
PulteGroup shares are up 21.7% in 2024, outpacing the S&P 500 index's SPX gain of 16.7%.
-James Rogers
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