Pulte Homes (PHM) Q3 Post Loss, But Looks To Build on Centex Acquisition
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Pulte Homes Inc. (NYSE: PHM) reported a loss of $361 million in the third quarter, however the company increased sales by more than a third with the acquisition of Centex Corp.
The company reported a third-quarter loss of $1.15 per share, far from the analyst consensus of a 64 cent loss per share. Total revenue also missed the market estimate for Pulte, with third-quarter numbers at $1.09 billion, below the $1.17 billion consensus and down from $1.5 billion in last year's third quarter.
With the acquisition of Centex in August, Pulte received an increased market share in the first-time homebuyer market. This market for the Company has received a government stimulus with the temporary federal tax credit.
"Beyond the impact of the merger, Pulte's Q3 results reflect a homebuilding industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support homebuyer demand," said Richard J. Dugas, Jr., Chairman, President and CEO of Pulte Homes.
Pulte Homes raised its merger synergy and savings target by 25% to $440 million.
New home orders for the Company, including those made through Centex operations grew by 35 percent to 4.048 homes, ahead of the same quarter last year which saw 3,008 in sales. The quarter-end backlog was 8,838 homes, valued at $2.2 billion.
Pulte said as of September 30, 2009 it was out of compliance with the tangible net worth covenant under its credit facility, but it is in talks with banks to negotiate a permanent amendment by December 15, 2009.
Shares of Pulte Homes are priced at $9.23 before the market opens today.
The company reported a third-quarter loss of $1.15 per share, far from the analyst consensus of a 64 cent loss per share. Total revenue also missed the market estimate for Pulte, with third-quarter numbers at $1.09 billion, below the $1.17 billion consensus and down from $1.5 billion in last year's third quarter.
With the acquisition of Centex in August, Pulte received an increased market share in the first-time homebuyer market. This market for the Company has received a government stimulus with the temporary federal tax credit.
"Beyond the impact of the merger, Pulte's Q3 results reflect a homebuilding industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support homebuyer demand," said Richard J. Dugas, Jr., Chairman, President and CEO of Pulte Homes.
Pulte Homes raised its merger synergy and savings target by 25% to $440 million.
New home orders for the Company, including those made through Centex operations grew by 35 percent to 4.048 homes, ahead of the same quarter last year which saw 3,008 in sales. The quarter-end backlog was 8,838 homes, valued at $2.2 billion.
Pulte said as of September 30, 2009 it was out of compliance with the tangible net worth covenant under its credit facility, but it is in talks with banks to negotiate a permanent amendment by December 15, 2009.
Shares of Pulte Homes are priced at $9.23 before the market opens today.
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