Financial Performance - Earnings increased 16% to $3.35 per share compared to $2.90 per share in the prior year period[1] - Net income for the nine months ended September 30, 2024, was $2,170,023, an increase of 14.8% compared to $1,891,379 for the same period in 2023[15] - Home sale revenues for the three months ended September 30, 2024, reached $4,343,227, up 11.7% from $3,886,908 in the same period of 2023[17] - Total Homebuilding revenues for the nine months ended September 30, 2024, were $12,707,308, representing a 10.1% increase from $11,541,051 in the prior year[17] - Financial services operations generated pre-tax income of $55 million, a 90% increase from $29 million in the prior year[4] Home Sales and Orders - Home sale revenues rose 12% to $4.3 billion, driven by a 12% increase in closings to 7,924 homes[3] - Net new orders totaled 7,031 homes valued at $3.9 billion, reflecting a 3% increase over the previous year[3] - The average selling price of homes closed was $548,000, effectively unchanged from the prior year[3] - The average selling price for homes sold in the three months ended September 30, 2024, was $548,000, slightly down from $549,000 in the same period of 2023[19] Backlog and Inventory - The unit backlog at the end of the quarter was 12,089 homes with a total value of $7.7 billion[4] - The unit backlog at the end of September 2024 was 12,089 units, down from 13,547 units at the end of September 2023[19] Cash and Debt Management - The company ended the quarter with $1.5 billion in cash and a debt-to-capital ratio of 12.3%[5] - Cash provided by operating activities for the nine months ended September 30, 2024, was $1,113,184, a decrease from $1,908,344 in the same period of 2023[15] - Cash, cash equivalents, and restricted cash at the end of the period were $1,455,136, down from $1,899,561 at the end of September 30, 2023[15] - The company reported a net cash used in financing activities of $1,398,875 for the nine months ended September 30, 2024, compared to $1,008,305 in the same period of 2023[15] - As of September 30, 2024, the debt-to-capital ratio is 12.3%, down from 15.9% on December 31, 2023[25] - Total net debt as of September 30, 2024, is $168,550, compared to $113,041 on December 31, 2023[25] - Total capital increased to $13,187,899 as of September 30, 2024, from $12,345,475 on December 31, 2023[25] - Shareholders' equity rose to $11,564,213 as of September 30, 2024, up from $10,383,257 on December 31, 2023[25] - Total cash, cash equivalents, and restricted cash decreased to $1,455,136 as of September 30, 2024, from $1,849,177 on December 31, 2023[25] Mortgage Operations - Mortgage origination volume for the three months ended September 30, 2024, was 5,005 units, compared to 4,362 units in the same period of 2023, reflecting a 14.7% increase[21] - The capture rate for mortgage originations improved to 86.7% in the three months ended September 30, 2024, up from 83.5% in the same period of 2023[21] Non-GAAP Financial Measures - The company believes that its non-GAAP financial measures provide relevant information for evaluating profitability and liquidity[24] - The company uses debt-to-capital and net debt-to-capital ratios as indicators of overall leverage[24] - The report includes a reconciliation of non-GAAP financial measures related to debt-to-capital ratios[24] - The company emphasizes the importance of understanding the methods used by other companies in the homebuilding industry for calculating debt-to-capital ratios[24]

PulteGroup Inc. (PHM) is scheduled to report third-quarter 2024 results on Oct. 22, before the opening bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the second quarter of 2024, earnings and revenues handily beat the Zacks Consensus Estimate by 11.5% and 2.7%, respectively. PulteGroup’s balanced operating model resulted in increases in closings, average sales price, and gross margin, which collectively led to a 19.3% increase in earnings per share (EPS).Strong cash flows pr ...

Core Insights - Analysts forecast PulteGroup (PHM) will report quarterly earnings of $3.10 per share, reflecting a year-over-year increase of 6.9% and revenues of $4.26 billion, an increase of 6.4% compared to the previous year [1] Financial Projections - Consensus estimates for 'Homebuilding- Home sale revenues' are projected to reach $4.14 billion, indicating a year-over-year change of +6.6% [2] - 'Revenues- Financial Services' are expected to be $86.49 million, showing a +12.7% change from the prior-year quarter [2] - 'Revenues- Homebuilding' is anticipated to reach $4.17 billion, reflecting a +6.2% change from the previous year [2] Additional Metrics - 'Homebuilding- Land sale revenues' are forecasted at $34.88 million, indicating a year-over-year decline of -12.6% [3] - The 'Average Selling Price - Total' is expected to be $546.01, slightly down from $549 in the previous year [3] - 'Net New Orders in Units - Total' is projected to reach 7,077, a slight increase from 7,065 year-over-year [3] - 'Active Communities' are expected to total 954, up from 923 in the same quarter last year [3] - 'Closings (units) - Total' are anticipated to be 7,630, compared to 7,076 in the same quarter of the previous year [3] - The 'Unit Backlog - Total' is estimated at 12,429, down from 13,547 year-over-year [3] Backlog and Income Estimates - The estimated 'Backlog Value - Total' is $7.73 billion, down from $8.13 billion in the same quarter last year [4] - 'Net New Orders (Value) - Total' is projected at $3.93 billion, compared to $3.82 billion in the same quarter of the previous year [4] - 'Income / (loss) before income taxes- Homebuilding' is expected to be $821.54 million, slightly up from $818.37 million in the same quarter last year [4] Stock Performance - PulteGroup shares have returned +4.1% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [5]

In the latest market close, PulteGroup (PHM) reached $144.62, with a +1.46% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 1.01%.Heading into today, shares of the homebuilder had gained 1.77% over the past month, lagging the Construction sector's gain of 2.69% and the S&P 500's gain of 4.31% in that time.The upcoming earnings release of PulteGroup will be of great interest to investors. The company' ...

Core Viewpoint - PulteGroup, Inc. (PHM) is currently trading at a discount compared to the Zacks Building Products - Home Builders industry, with a forward Price/Earnings ratio of 10.31x, below the industry average of 11.06x and the broader Construction sector's 18.06x, indicating a strong value proposition for investors [1] Stock Performance - Over the past three months, PHM stock has surged 32.5%, outperforming the industry's growth of 29.9% and the Zacks S&P 500 Composite's gain of 2.5% [1] - PHM is trading at a 4.4% discount to its 52-week high of $145.84, reached on September 19, 2024, following a 50-basis point interest rate cut by the Federal Reserve [1] Market Outlook - Jerome Powell's indication of two additional rate cuts in 2024 could further boost the homebuilding market, enhancing the outlook for PulteGroup and its peers [2] - The stock is currently above both its 50-day and 200-day moving averages, reflecting strong investor confidence and a favorable market outlook [3] Operational Strategy - PulteGroup employs a balanced mix of speculative and build-to-order homes, with approximately 17,250 homes under construction, 40% of which are speculative, allowing responsiveness to market demands [5] - The management prioritizes Return on Equity (ROE) over high margins, achieving an ROE of 27.1% by Q2 2024, indicating efficient capital use and strong profitability [6] Land Management - PulteGroup's strategic land management involves controlling 53% of its lots through land options, with plans to increase this to 70%, optimizing returns and reducing risks [7] - The company has transacted 13,000 lots, freeing up $1.5 billion in capital, which enhances liquidity and flexibility in land acquisitions [7] Challenges - Managing inventory in overbuilt regions like Southwest Florida and parts of Texas is crucial to prevent high inventory levels that could pressure profit margins [8] - A 4% year-over-year drop in net new orders for Q2 highlights the housing market's sensitivity to economic factors, including interest rates and consumer sentiment [9] Consensus Estimates - Positive sentiment has led to upward revisions in the Zacks Consensus Estimate for earnings per share, with expected growth rates of 14% and 1.7% for the current and next year, respectively [10] Price Target and Recommendations - The average price target for PHM is $145.33 per share, suggesting a potential upside of 4.2% from the recent closing price of $139.44 [11] - PulteGroup is recommended for purchase due to its strategic initiatives and favorable market conditions, including low housing inventory and anticipated interest rate cuts [12] Cash Flow and Efficiency - As a Zacks Rank 2 (Buy) company, PulteGroup aims to reduce construction cycle times from 123 days to 100 days or less, targeting an additional $2 billion in operating cash flow in 2024 [13]

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is PulteGroup (PHM) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.PulteGroup is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 differe ...

In the latest trading session, PulteGroup (PHM) closed at $143.54, marking a +1.18% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.15%.Shares of the homebuilder have appreciated by 4.98% over the course of the past month, underperforming the Construction sector's gain of 7.51% and outperforming the S&P 500's gain of 2%.Analysts and investors alik ...

Homebuilders have not had a great 2024 so far, as the industry as a whole has been lagging behind the S&P year-to-date. This is primarily due to relatively hawkish Fed policy on continued high inflation, resulting in higher mortgageI am a sophomore at USC (class of 2027) studying economics and accounting and aiming for an equity research-related career path, and Seeking Alpha serves as the place for me to put up all of my pitches. I conduct generalist equity research, but at the moment I am focusing on US b ...

Core Insights - The U.S. housing market is showing signs of recovery after a challenging 2023 and the first half of 2024, with homebuilder confidence rebounding and increases in housing starts and building permits [1][2][3] Homebuilder Confidence - The National Association of Home Builders/Wells Fargo Housing Market Index reported that homebuilder confidence for newly built single-family homes rose to 41 in September from 39 in August [2] - Mortgage rates have decreased to their lowest level since February, with the 30-year fixed mortgage rate at 6.2%, down from 7.18% a year ago [2] Housing Starts and Building Permits - Housing starts for privately owned homes increased by 9.6% to an annualized rate of 1.356 million in August, surpassing the consensus estimate of a 2.9% rise [3] - Year-over-year, housing starts rose by 3.9% in August, with single-family housing starts increasing by 15.8% compared to July, reaching 992,000 units [3] - Residential building permits for August rose by 4.9% from the previous month to an annualized rate of 1.475 million units, also exceeding the consensus estimate [3] Federal Reserve Rate Cuts - The Federal Reserve announced a 50-basis point rate cut, the largest since 2008, which is expected to positively impact the housing market, contributing 3.1% to GDP [5] - The rate cut is anticipated to lower mortgage rates further, aiding the homebuilding sector [5] Homebuilder Stocks with Growth Potential - **PulteGroup (PHM)**: Expected earnings growth rate of 14% for the current year, with a Zacks Rank of 2 [6] - **Meritage Homes (MTH)**: Expected earnings growth rate of 6.1% for the current year, also holding a Zacks Rank of 2 [7] - **M/I Homes, Inc. (MHO)**: Expected earnings growth rate of 21.9% for the current year, with a Zacks Rank of 2 [9] - **Century Communities (CCS)**: Expected earnings growth rate of 32.5% for the current year, currently holding a Zacks Rank of 1 [12]

For Immediate ReleasesChicago, IL – September 20 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Century Communities, Inc. (CCS) , M/I Homes, Inc. (MHO) , Meritage Homes Corp. (MTH) , PulteGroup, Inc. (PHM) and Taylor Morrison Home Corp. (TMHC) .Here are highlights from Friday’s Analyst Blog: 5 Housing Stocks to ...