Homebuilding company PulteGroup (NYSE: PHM) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
PulteGroup beat analysts’ revenue expectations last quarter, reporting revenues of $4.61 billion, down 6.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.
Is PulteGroup a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PulteGroup’s revenue to decline 12.8% year on year, a further deceleration from the 1.4% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PulteGroup has a history of exceeding Wall Street’s expectations.
Looking at PulteGroup’s peers in the home builders segment, some have already reported their Q1 results, giving us a hint as to what we can expect. D.R. Horton’s revenues decreased 2.3% year on year, missing analysts’ expectations by 0.7%, and KB Home reported a revenue decline of 22.6%, falling short of estimates by 1.8%. KB Home traded down 1.5% following the results.
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 11.2% on average over the last month. PulteGroup is up 8.4% during the same time and is heading into earnings with an average analyst price target of $135.21 (compared to the current share price of $128.66).
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