PulteGroup
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), PulteGroup missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins grew across the board.
Revenue details
PulteGroup recorded revenue of $1.30 billion. The 14 analysts polled by S&P Capital IQ looked for net sales of $1.42 billion on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $1.14 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.27. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.20 per share. GAAP EPS were $0.30 for Q3 versus -$0.34 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 18.2%, 240 basis points better than the prior-year quarter. Operating margin was 8.0%, 430 basis points better than the prior-year quarter. Net margin was 9.0%, 2,030 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.49 billion. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $4.85 billion. The average EPS estimate is $0.52.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 599 members out of 1,280 rating the stock outperform, and 681 members rating it underperform. Among 351 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give PulteGroup a green thumbs-up, and 192 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PulteGroup is hold, with an average price target of $14.97.
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