PulteGroup Inc. (NYSE:PHM) Q3 2024 Earnings Conference Call October 22, 2024 8:30 AM ET Company Participants James Zeumer - Vice President, Investor Relations Ryan Marshall - President and Chief Executive Officer Robert O'Shaughnessy - Executive Vice President and Chief Financial Officer Conference Call Participants John Lovallo - UBS Alan Ratner - Zelman & Associates Stephen Kim - Evercore ISI Anthony Pettinari - Citi Michael Rehaut - JPMorgan Michael Dahl - RBC Capital Markets Carl Reichardt - BTIG Trevor ...

For the quarter ended September 2024, PulteGroup (PHM) reported revenue of $4.48 billion, up 11.8% over the same period last year. EPS came in at $3.35, compared to $2.90 in the year-ago quarter. The reported revenue represents a surprise of +5.13% over the Zacks Consensus Estimate of $4.26 billion. With the consensus EPS estimate being $3.10, the EPS surprise was +8.06%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Company Performance - PulteGroup reported quarterly earnings of $3.35 per share, exceeding the Zacks Consensus Estimate of $3.10 per share, and up from $2.90 per share a year ago, representing an earnings surprise of 8.06% [1] - The company achieved revenues of $4.48 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 5.13%, compared to $4 billion in the same quarter last year [1] - Over the last four quarters, PulteGroup has consistently surpassed consensus EPS estimates four times and revenue estimates three times [1] Stock Performance - PulteGroup shares have increased approximately 39.8% since the beginning of the year, outperforming the S&P 500's gain of 22.7% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $3.39 on revenues of $4.62 billion, and for the current fiscal year, it is $13.36 on revenues of $17.43 billion [4] - The estimate revisions trend for PulteGroup is mixed, and changes in estimates for the coming quarters are anticipated following the recent earnings report [4] Industry Context - The Building Products - Home Builders industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [5] - Meritage Homes, another company in the same industry, is expected to report quarterly earnings of $5.05 per share, reflecting a year-over-year decline of 15.6% [5]

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' ...

PulteGroup, Inc. (PHM) stock is currently trading at a discount relative to the Zacks Building Products - Home Builders industry. With a forward 12-month Price/Earnings ratio of 10.31x, it sits well below the industry average of 11.06x and the broader Construction sector’s 18.06x. PHM stock also has a Value Score of A.Over the past three months, PHM stock surged 32.5%, outpacing the industry’s 29.9% growth and the Zacks S&P 500 Composite's 2.5% gain.PHM is currently trading at only a 4.4% discount to its 52 ...

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 ...