Homebuilding company PulteGroup (NYSE: PHM) will be reporting results this Thursday before market hours. Here’s what investors should know.
PulteGroup beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $4.40 billion, down 1.6% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ backlog estimates.
Is PulteGroup a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting PulteGroup’s revenue to decline 11.6% year on year to $4.35 billion, a reversal from the 14.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.81 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PulteGroup has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.
Looking at PulteGroup’s peers in the home builders segment, some have already reported their Q4 results, giving us a hint as to what we can expect. D.R. Horton’s revenues decreased 9.5% year on year, beating analysts’ expectations by 3.4%, and KB Home reported a revenue decline of 15.3%, topping estimates by 2.3%. D.R. Horton traded up 1.4% following the results while KB Home was down 8.5%.
Read our full analysis of D.R. Horton’s results here and KB Home’s results here.
There has been positive sentiment among investors in the home builders segment, with share prices up 9.3% on average over the last month. PulteGroup is up 3.7% during the same time and is heading into earnings with an average analyst price target of $139.69 (compared to the current share price of $123.08).
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