PulteGroup (PHM) Misses Q3 EPS by 1c

October 20, 2016 6:37 AM EDT
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PulteGroup (NYSE: PHM) reported Q3 EPS of $0.43, ex-items, $0.01 worse than the analyst estimate of $0.44. Revenue for the quarter came in at $1.94 billion versus the consensus estimate of $1.95 billion.

Net new orders for the third quarter increased 17% to 4,775 homes. The value of orders increased 25% over the prior year to $1.8 billion. The Company operated out of 709 communities in the third quarter, which is an increase of 16% over the third quarter of 2015.

Backlog value increased 20% over the prior year to $3.7 billion, as the number of homes in backlog increased 8% to 9,417 homes. The average price of homes in backlog was $393,000, which is up 11% over last year.

"I am extremely pleased with PulteGroup's third quarter results which show a continuation of the strong demand and operating trends we experienced in the first half of 2016," said Ryan Marshall, President and Chief Executive Officer of PulteGroup. "Of particular note, the 25% increase in the value of our Q3 orders, one of the largest gains we have realized in years, benefited from the increased land investments we made in recent years and strong sales activity across all buyer groups, as first time, move up and active adult all gained over last year.

"Along with delivering strong operating and financial results, the Company also completed its announced leadership transition during the quarter as Richard Dugas retired as CEO following a successful 22-year career. As an organization, we will continue to advance the Company's Value Creation strategy which has been instrumental in elevating our financial results over the past five years to be among the industry leaders.

"With U.S. new home sales for 2016 on track to grow in excess of 10% over last year, we believe housing demand remains on a sustained path of recovery fueled by ongoing job creation, low unemployment, a supportive interest rate environment and a limited inventory of homes. Given these market dynamics, and in alignment with our Value Creation strategy, we continue to grow our operations through continued investment in high returning land positions, while consistently returning funds to shareholders through dividends and share repurchases."

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

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