Financial Performance - PulteGroup reported net income of $913 million, or $4.43 per share, for Q4 2024, compared to $711 million, or $3.28 per share, in the prior year[2][3]. - Full year revenues reached nearly $18 billion, with net income of $3.1 billion and a return on equity of 27.5%[3]. - Net income for the year ended December 31, 2024, increased to $3,083,262, up 18.4% from $2,602,372 in 2023[25]. Home Sales and Orders - Home sale revenues in Q4 increased 13% to $4.7 billion, driven by a 6% increase in closings to 8,103 homes[5]. - The average selling price of homes closed in Q4 was $581,000, up 6% from $547,000 in the prior year[5]. - The company's net new orders for Q4 were 6,167 homes, valued at $3.5 billion, a 4% increase over last year[8]. - Home sale revenues for the year ended December 31, 2024, reached $17,318,521, a 10.9% increase from $15,598,707 in 2023[27]. - Total Homebuilding revenues for the year ended December 31, 2024, were $17,513,956, compared to $15,740,823 in 2023, reflecting a growth of 11.2%[27]. - The average selling price of homes increased to $555, up from $545 in 2023, indicating a 1.8% rise[29]. - Net new orders in dollars for the year ended December 31, 2024, totaled $16,493,524, a 8.2% increase from $15,244,353 in 2023[29]. Backlog and Inventory - The unit backlog stood at 10,153 homes, with a total value of $6.5 billion[6]. - The unit backlog decreased to 10,153 units as of December 31, 2024, down from 12,146 units in 2023[29]. Share Repurchase and Financial Management - PulteGroup repurchased $320 million of common shares in Q4, with a total of $1.2 billion repurchased in 2024, representing 4.7% of shares outstanding[11]. - The company announced a $1.5 billion increase to its share repurchase authorization, bringing the total remaining authorization to $2.1 billion[12]. Financial Services - Financial services operations generated pre-tax income of $51 million, a 16% increase from the prior year[9]. - Mortgage origination volume for the year ended December 31, 2024, was $19,770, an increase from $17,427 in 2023[31]. - The capture rate for mortgage originations improved to 85.9% in Q4 2024, compared to 81.6% in Q4 2023[31]. Cash and Debt Management - The company's cash and equivalents at the end of Q4 were $1.6 billion, with a debt-to-capital ratio of 11.8%[11]. - The debt-to-capital ratio improved to 11.8% in 2024, down from 15.9% in 2023, indicating reduced leverage[37]. - Cash provided by operating activities for the year ended December 31, 2024, was $1,680,794, down from $2,196,762 in 2023[25].

Core Viewpoint - PulteGroup (PHM) is expected to report quarterly earnings of $3.24 per share, reflecting a 1.2% decline year-over-year, while revenues are forecasted to increase by 8.6% to $4.66 billion [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.4%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Homebuilding - Home sale revenues' to reach $4.53 billion, marking an 8.9% increase from the previous year [5]. - The 'Revenues - Financial Services' are projected at $100.25 million, reflecting a 6.8% year-over-year increase [5]. - The consensus for 'Revenues - Homebuilding' stands at $4.56 billion, indicating an 8.6% increase from the prior year [5]. Key Metrics - 'Homebuilding - Land sale revenues' are expected to be $32.02 million, showing a 7.3% decline year-over-year [6]. - The 'Average Selling Price - Total' is projected at $559.52, up from $547 in the same quarter last year [6]. - 'Net New Orders in Units - Total' is expected to be 6,274, compared to 6,214 in the same quarter last year [7]. - 'Active Communities' are estimated at 950, up from 919 a year ago [7]. - 'Closings (units) - Total' are projected to reach 8,099, compared to 7,615 in the same quarter last year [7]. Backlog and Orders - 'Unit Backlog - Total' is expected to be 10,264, down from 12,146 year-over-year [8]. - 'Backlog Value - Total' is projected at $6.64 billion, compared to $7.32 billion last year [8]. - 'Net New Orders (Value) - Total' is forecasted to reach $3.60 billion, up from $3.36 billion year-over-year [8]. Financial Services - 'Income / (loss) before income taxes - Financial Services' is expected to be $52.82 million, compared to $43.85 million last year [9]. Stock Performance - Over the past month, PulteGroup shares have returned +5.7%, outperforming the Zacks S&P 500 composite's +1.7% change [10].

Core Viewpoint - PulteGroup Inc. is expected to report its fourth-quarter 2024 results on January 30, with positive earnings and revenue growth anticipated despite challenges in the housing market [1][2]. Revenue Expectations - The Zacks Consensus Estimate for PulteGroup's fourth-quarter EPS has risen to $3.21, reflecting a 2.1% decrease from the previous year's EPS of $3.28, while revenue is projected at $4.66 billion, indicating an 8.6% year-over-year growth [3]. - The company's revenue growth is attributed to a balanced operating model, mortgage rate buydown programs, and favorable home pricing, despite higher mortgage rates and affordability challenges [4]. Home Closings and Pricing - PulteGroup anticipates home closings to be between 7,900 and 8,300 units, an increase from 7,615 units a year ago, with a model prediction of 8,012 units, representing a 5.2% year-over-year growth [5]. - The average selling price (ASP) for homes is expected to be between $555,000 and $565,000, up from $547,000 a year ago, with a model prediction of a 2.3% increase to $559,500 [6]. Segment Performance - Homebuilding revenues, which contributed 98% to total revenues in 2023, are expected to rise by 7.5% year-over-year to $4.51 billion, driven by higher home closings and ASP [7]. - Financial services revenues, contributing 2% to total revenues in 2023, are projected to increase by 4.4% year-over-year to $98 million [7]. Margin Analysis - PulteGroup is likely to experience margin pressure due to the need for incentives to address affordability concerns, with homebuilding gross margins expected to be in the range of 27.5% to 27.8%, down from 28.7% in the previous year [8][9]. Orders and Backlogs - The company expects net new orders to increase by 6% year-over-year to 6,586 units, while total backlog is anticipated to decline by 12.2% to 10,663 units, with the total backlog value decreasing by 5.6% year-over-year to $6.91 billion [11]. Earnings Prediction - The model predicts an earnings beat for PulteGroup, supported by a positive Earnings ESP of +2.36% and a Zacks Rank of 3 (Hold) [12][13].

Company Overview - PulteGroup (PHM) is expected to report a year-over-year decline in earnings of 2.1%, with earnings projected at $3.21 per share, while revenues are anticipated to increase by 8.6% to $4.66 billion for the quarter ended December 2024 [3][12]. Earnings Expectations - The earnings report is scheduled for January 30, 2025, and could influence the stock price significantly depending on whether the actual results exceed or fall short of expectations [2][14]. - The consensus EPS estimate has been revised down by 0.43% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for PulteGroup is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.36%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. - Historical performance shows that PulteGroup has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +8.06% in the last reported quarter [12][13]. Industry Context - In the Zacks Building Products - Home Builders industry, Meritage Homes (MTH) is also expected to report earnings of $2.45 per share, reflecting a year-over-year decline of 8.9%, with revenues projected to decrease by 5.1% to $1.57 billion [17]. - Meritage Homes has seen a significant upward revision of 11.8% in its consensus EPS estimate over the last 30 days, resulting in an Earnings ESP of 5.97%, indicating a strong likelihood of beating the consensus EPS estimate [18].

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and improve their investment strategies through various rankings and scores [1][2]. Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2][3]. - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperforming the market [3]. Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3]. Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4]. Momentum Score - The Momentum Style Score assesses stocks based on recent price changes and earnings estimate trends, helping investors capitalize on upward or downward price movements [5]. VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors seeking stocks with attractive value, strong growth forecasts, and promising momentum [6]. Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8]. Stock to Watch: PulteGroup - PulteGroup Inc. operates primarily in homebuilding and financial services, with 98% of its revenue coming from homebuilding as of 2023 [12]. - Currently rated 3 (Hold) with a VGM Score of A, PulteGroup has a Momentum Style Score of A and has seen a 4.6% increase in shares over the past four weeks [12][13]. - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate increasing by $0.01 to $13.43 per share, alongside an average earnings surprise of 10.9% [13].

Company Performance - PulteGroup (PHM) closed at $115.81, reflecting a -1.04% change compared to the previous day, underperforming the S&P 500's 0.88% gain [1] - Over the past month, PulteGroup's shares have increased by 6.27%, while the Construction sector and S&P 500 gained 3.13% and 1.17% respectively [1] Upcoming Earnings - PulteGroup is expected to release its earnings on January 30, 2025, with analysts projecting earnings of $3.21 per share, indicating a year-over-year decline of 2.13% [2] - The Zacks Consensus Estimate for revenue is $4.66 billion, representing an 8.58% increase from the previous year [2] Analyst Forecasts - Recent revisions to analyst forecasts for PulteGroup are crucial as they reflect short-term business trends and analysts' confidence in the company's performance [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates PulteGroup at 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate for PulteGroup has increased by 0.2% [5] Valuation Metrics - PulteGroup has a Forward P/E ratio of 8.74, which is higher than the industry average Forward P/E of 8.29 [6] - The company has a PEG ratio of 0.46, compared to the industry average PEG ratio of 0.83 [7] Industry Context - The Building Products - Home Builders industry, which includes PulteGroup, has a Zacks Industry Rank of 216, placing it in the bottom 14% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? PulteGroup (PHM) , which belongs to the Zacks Building Products - Home Builders industry, could be a great candidate to consider.This homebuilder has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 9.80%.For the most recent quarter, PulteGroup was ...

PulteGroup (PHM) closed the latest trading day at $108.99, indicating a +1.28% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.Prior to today's trading, shares of the homebuilder had lost 9.13% over the past month. This has was narrower than the Construction sector's loss of 10.48% and lagged the S&P 500's loss of 2.2% in that time.The investment community will be paying close attent ...

Here, I revisit the homebuilders to assess whether PulteGroup (NYSE: PHM ), a Quant “Buy” since April 2024, remains my top industry choice for 2025. PHM is up over 12% since my previous coverage , trailing the total returnJoseph Jones, professor at The University of Southern Mississippi, has over fifteen years of experience studying the market. He focuses on portfolio construction from a dividend growth investor's perspective. The insights expressed in his research are solely his own; they do not represent ...

A month has gone by since the last earnings report for PulteGroup (PHM) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is PulteGroup due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. PulteGroup's Q3 Earnings & Revenues Beat EstimatesPul ...