The 10-second takeaway
For the quarter ended March 31 (Q1), PulteGroup missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased.
Margins grew across the board.
PulteGroup reported revenue of $1.16 billion. The 12 analysts polled by S&P Capital IQ anticipated a top line of $1.20 billion on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $881.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS were $0.21 for Q1 against -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.6%, 510 basis points better than the prior-year quarter. Operating margin was 7.1%, 800 basis points better than the prior-year quarter. Net margin was 7.0%, 830 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $5.95 billion. The average EPS estimate is $1.51.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 622 members out of 1,299 rating the stock outperform, and 677 members rating it underperform. Among 312 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give PulteGroup a green thumbs-up, and 150 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 $20.34.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.