PulteGroup beats by $0.07, beats on revs; guides on call
- Reports Q3 (Sep) earnings of $1.01 per share, $0.07 better than the S&P Capital IQ Consensus of $0.94; revenues rose 24.3% year/year to $2.65 bln vs the $2.62 bln S&P Capital IQ Consensus. The higher revenues for the period reflect a 17% increase in closings to 6,031 homes vs. 6000-6300 guidance, combined with a 7%, or $27,000, increase in average sales price to $427,000 vs. $415-425K guidance.
- Home sale gross margin for the third quarter was 24.0% vs. 23.8-24.3% guidance, which is up 10 basis points over the prior year and consistent with the Company's reported gross margin for the second quarter of 2018.
- Net new orders for the third quarter increased 1% to 5,350 homes. The value of third quarter net new orders was $2.3 billion, which is an increase of 1% over the prior year. Unit backlog for the quarter was up 3% over the third quarter of last year to 11,164 homes, with backlog value increasing 5% to $4.9 billion.
- "The critical underpinnings that have supported a slow but steady housing recovery, including a strong economy, low unemployment, high consumer confidence and limited home inventory, remain solidly in place," continued Marshall. "While buyer concerns around affordability and rising mortgage rates appear to have impacted near term market dynamics, traffic trends indicate that buyer interest levels are still high and that the overall housing recovery remains on track."
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