 | Your browser does not display parts of our website correctly. We use the latest technology available to provide you with a high quality experience; please upgrade your browser to its latest version to view the contents properly: |
PulteGroup, Inc. (PHM) primarily engages in the homebuilding business in the United States.
The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on such land.
It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods names.
As of December 31, 2017, the company controlled 89,253 owned lots and 52,156 lots under land option agreements.
It also arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers.
Shares are trading at their 200-day moving avrage, and the $28.50 support level. The firm reported its quarterly results this morning.
PulteGroup reported Q1 EPS 59c vs. consensus of 45c. It reported Q1 revenue $1.97B, consensus $1.84B. Home sale revenues for the first quarter totaled $1.9 billion, an increase of 21% over the prior year. Higher revenues for the quarter were driven by a 10% increase in average selling price to $413,000, in combination with a 9% increase in closings to 4,626 homes.
Home sale gross profits for the quarter were $452 million, or 23.6% of home sale revenues, compared with $368 million, or 23.2% of home sale revenues, in the prior year.
For the quarter, net new orders increased 12% over the prior year to 6,875 homes, as the dollar value of net new orders increased 18% to $2.9 billion.
During the first quarter, the Company operated out of 844 communities, which was up 8% over 2017. The Company ended the quarter with a backlog of 11,245 homes valued at $5.0 billion, which are increases of 21% and 30%, respectively, over last year, and represent decade highs for the period. The average sales price in backlog increased 8% over last year to $441,000, as price benefitted from the product and geographic mix of homes, as well as higher selling prices realized within each buyer group.
Entry Point: $30.00
Stop Loss: $28.45
52-Weeks Trading Range: $21.41 - $35.21
Target Price: $33.00
PHM closed at $29.44
