Pulte Group (PHM) Reports In-Line Q2 EPS

Pulte Group (NYSE: PHM) reported Q2 EPS of $0.25, in-line with the analyst estimate of $0.25. Revenue for the quarter came in at $1.29 billion versus the consensus estimate of $1.34 billion.

Highlights:

• Q2 Earnings of $0.11 Per Share, After Charges of $0.14 Per Share for Insurance Reserves and Office Relocation Costs
• Q2 Pretax Income of $68 Million After Charges of $88 Million; Q2 2013 Pretax Income of $38 Million After Charges of $67 Million
• Home Sale Revenues Increased 2% to $1.2 Billion
• Average Selling Price for Homes Delivered in the Quarter Increased 12% to $328,000
• Gross Margin of 23.6% Expanded by 480 Basis Points Over Prior Year
• Value of Net New Orders Increased 5% to $1.6 Billion
• Higher Absorptions Per Community Drove Signups of 4,778 Homes
• Backlog Value at Quarter End of $2.8 Billion, Up from $2.7 Billion in 2013
• 7% Increase in Average Sales Price of Homes in Backlog to $339,000
• Company Announces New $500 Million Senior Unsecured Revolving Credit Facility

"The ongoing gains demonstrated in PulteGroup's second quarter operating results reflect the benefits of company-specific initiatives and favorable macro conditions that exist in today's housing market," said Richard J. Dugas, Jr., Chairman, President and Chief Executive Officer of PulteGroup. "Price appreciation, which in combination with the operational improvements we continue to realize, supported a 480 basis point increase in gross margin to 23.6% and corresponding gains in quarterly net income.

"Our view of the U.S. housing market remains positive, as improvements in both the economy and employment provide ongoing support to an industry already benefiting from low inventory, low mortgage rates, better pricing and favorable demographic trends. Within this environment, our strong operating gains enable us to continue increasing investment into the business, while continuing to drive excellent returns on invested capital."

For earnings history and earnings-related data on Pulte Group (PHM) click here.

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