The 10-second takeaway
For the quarter ended June 30 (Q2), PulteGroup missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins shrank, net margins dropped.
PulteGroup logged revenue of $1.28 billion. The 16 analysts polled by S&P Capital IQ predicted revenue of $1.39 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.07 billion.
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 $0.26. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.26 for Q2 were 136% higher than the prior-year quarter's $0.11 per share. GAAP EPS of $0.09 for Q2 were 18% lower than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.1%, 270 basis points better than the prior-year quarter. Operating margin was 2.9%, 140 basis points worse than the prior-year quarter. Net margin was 2.8%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $6.01 billion. The average EPS estimate is $1.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 621 members out of 1,295 rating the stock outperform, and 674 members rating it underperform. Among 330 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give PulteGroup a green thumbs-up, and 174 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 $22.97.
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