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Atlanta, Georgia-based PulteGroup, Inc. (PHM) operates in the homebuilding and financial services sectors, with a market cap of $30.4 billion. The company develops residential land, constructs homes across multiple brands, and offers mortgage and title services primarily for homebuyers in the United States. The company is expected to announce its fiscal Q3 earnings results before the market opens on Tuesday, Oct. 22.
Ahead of the event, analysts expect the homebuilder company to report a profit of $3.10 per share, up 6.9% from $2.90 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, the company exceeded forecasts by an 11.5% margin.
For fiscal 2024, analysts expect PHM to report an EPS of $12.90, up 10.1% from $11.72 in fiscal 2023.
PHM has jumped 95.7% over the past 52 weeks, significantly outperforming both the S&P 500 Index's ($SPX) 33.1% rise and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 22.8% increase over the same period.
Shares of PulteGroup rose marginally on Jul. 23 due to better-than-expected Q2 adjusted earnings of $3.58 per share and revenue of $4.6 billion. A shortage of existing homes, fueled by homeowners holding onto lower mortgage rates, boosted demand for new constructions. Additionally, PulteGroup's average home selling price increased by 2%, with a rise in gross margins, further supporting the positive market reaction. Moreover, Del Webb recently broke ground on its new active adult community, Heartwood, near Savannah, Georgia, offering resort-style living for those 55 and older. The 310-acre development will feature around 700 homes, a clubhouse, outdoor amenities, and access to the Jerico River, with the sales center expected to open in spring 2025.
Analysts' consensus view on PulteGroup stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, eight recommend a "Strong Buy," one suggests a "Moderate Buy," and seven give a "Hold" rating. This consensus is less bullish than three months ago, with 10 “Strong Buy” ratings on the stock. PHM is currently trading slightly below the average analyst price target of $144.20.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
