Key PointsPulteGroup is a U.S. homebuilder that operates under brands like Pulte Homes, Del Webb, Centex, American West, DiVosta, John Wieland Homes, and Neighborhoods.Despite a soft housing market, PulteGroup is thriving as new home sales rose 8.8% in March 2024, while existing home sales fell 4.3% to 4.3 million.PulteGroup beat Q1 EPS estimates by 74 cents while revenues climbed by 10.4% YoY to $3.95 billion, beating $3.58 billion consensus estimates.5 stocks we like better than PulteGroupHomebuilder Pult ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium also includes the Zacks Style Scores.What are the Zacks Style Scores?Developed alongsid ...

PulteGroup (PHM) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing e ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores.W ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about PulteGroup (PHM) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.PulteGroup currently has an average brokerage recommendation ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-9804 PULTEGROUP, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Michigan 38-2766606 (I.R.S. Employe ...

PulteGroup (PHM) came out with quarterly earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.36 per share. This compares to earnings of $2.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 21.61%. A quarter ago, it was expected that this homebuilder would post earnings of $3.20 per share when it actually produced earnings of $3.28, delivering a surprise of 2.50%.Over the last four quarters, the company has ...

PulteGroup Inc. (PHM) reported stellar results in first-quarter 2024, wherein earnings and revenues surpassed the Zacks Consensus Estimates.Also, both metrics increased year over year on favorable demand conditions and its balanced operating model, which allows the company to more effectively meet the individual needs of first-time, move-up and active-adult consumers.PHM’s president and CEO, Ryan Marshall, said, “Given PulteGroup’s broad operating platform and deep product portfolio, along with the powerful ...

Financial Data and Key Metrics - Q1 2024 revenue reached $3.8 billion, with gross margins of 29.6% and earnings per share of $3.10 [7] - Home sale revenues increased by 10% YoY to $3.8 billion, driven by an 11% increase in closings to 7,095 homes, partially offset by a 1% decrease in average sales price to $538,000 [16] - Net new orders increased 14% YoY to 8,379 homes, with cancellation rates dropping to 10.1% from 12.7% in Q1 2023 [18] - Gross margin improved by 50 basis points YoY to 29.6%, exceeding guidance [21] - Pre-tax income reached a record $869 million, up 24% YoY, with net income of $663 million or $3.10 per share [27] Business Line Performance - Closings mix: 41% first-time buyers, 36% move-up, and 23% active adult, compared to 38%, 36%, and 26% respectively in Q1 2023 [17] - Net new orders increased across all buyer groups: first-time buyers +8%, move-up +22%, and active adult +12% [19] - Financial services pre-tax income surged nearly 200% YoY to $41 million, driven by improved market conditions and higher capture rates [26] Market Performance - Strong demand continued in the Southeast, Florida, and Texas, while previously struggling markets like Arizona, California, and Nevada showed significant improvement [10] - Net pricing increased by 1% to 5% across more than half of the communities due to stable or improving pricing dynamics [11] - Average community count increased by 6% YoY to 931, with an absorption pace of approximately three homes per month [18] Strategy and Industry Competition - The company maintained pricing discipline in Q4 2023, which allowed for higher margins and inventory availability for the 2024 spring selling season [9] - The housing market remains supply-constrained, with a structural shortage of approximately 4 million housing units in the US [12] - Mortgage rate buy-downs were used by 25% of home buyers in Q1, providing a competitive advantage in a high-interest-rate environment [13] Management Commentary on Operating Environment and Outlook - Management highlighted the resilience of the economy and strong job market, expressing optimism for 2024 despite higher interest rates [14] - The company raised its full-year guidance for closings to approximately 31,000 homes, representing an 8% increase over 2023 [20] - Gross margin guidance for Q2 2024 was raised to 29.2%, with expectations of 29% for Q3 and Q4 [23] Other Important Information - The company invested $1.1 billion in land acquisition and development in Q1, with plans to invest approximately $5 billion for the full year [28] - Share repurchases totaled 2.3 million shares at an average price of $106.73 per share, costing $246 million [30] - The company ended Q1 with $1.8 billion in cash and a net debt-to-capital ratio of 1.7% [31] Q&A Session Summary Question: Long-term land strategy and cash flow expectations [37][39] - The company aims to control seven years of land supply, with 70% under option, a multi-year journey to achieve ideal economics [38] - Cash flow from operations is expected to increase, with capital allocated to business growth, dividends, and stock repurchases [41][42] Question: Incentive strategy and margin trade-offs [45][48] - The company will not prioritize margin over growth, using mortgage rate buy-downs to support affordability, with incentives expected to remain flat at 6.5% [46][47] - Land costs are expected to increase mid to high single digits, with no significant deceleration in the land market [49][50] Question: Construction cycle times and existing home inventory [52][55] - Construction cycle times improved to 128 days, with a target of 100 days by year-end [53] - Existing home inventory is largely neutral on supply, as most sellers are likely to buy another home [56] Question: Impact of NAR settlement and regional market trends [58][60] - The NAR settlement may increase transparency in real estate fees, with over 60% of sales involving buyer-side realtors [59] - Western markets like Arizona, California, and Nevada improved due to price adjustments and better buyer sentiment [61] Question: Demand trends and material costs [63][66] - Demand remained strong in Q1, with some moderation in April due to rising interest rates [64] - Material costs were stable at $80 per square foot, with low single-digit inflation expected for 2024 [67] Question: Gross margin outlook and mix impact [68][71] - Gross margins are expected to remain flat YoY, driven by pricing increases and favorable mix shifts [69] - The step-down in Q2 gross margin guidance reflects a reversal of the Q1 mix benefit and expected changes in geographic mix [72] Question: Spec vs. build-to-order strategy and incentive sensitivity [94][97] - The company maintains a 50/50 split between spec and build-to-order, with flexibility to adjust based on market conditions [95] - Incentives are expected to remain flat, but the company will monitor demand and adjust pricing or incentives as needed [97][100] Question: Florida market performance [102][104] - Florida remains a strong market, with a focus on move-up and age-targeted buyers, though affordability challenges persist due to price appreciation and rising property taxes and insurance costs [103][104]