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PulteGroup Q3 home sale revenue falls 9% as demand weakens

By Reuters News


Overview

  • U.S. homebuilder's Q3 home sale revenue fell 9% yr/yr amid lower closings and prices

  • Q3 EPS declined to $2.53 from $2.96 a year earlier

  • Company repurchased $350 mln of common shares in the quarter


Outlook

  • Company says rising mortgage rates and inflation are pressuring homebuying demand

  • Company continues to balance price and pace of sales and align production with market conditions


Result Drivers

  • MORTGAGE RATES AND AFFORDABILITY - Co said rising mortgage rates and stretched affordability pressured homebuying demand

  • BUYER MIX - Co said more than 60% of business now comes from move-up and active-adult buyers, helping maintain strong gross margins

  • LAND IMPAIRMENTS - Co said Q3 gross margin included $26 mln of land impairments, reducing margin by about 70 basis points


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Home Sale Revenues

$3.86 bln

Q3 EPS

$2.53

Q3 Home Sale Gross Margin

24.80%

Q3 Orders

$3.5 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the homebuilding peer group is "buy"

  • Wall Street's median 12-month price target for PulteGroup, Inc. is $137.50, about 21.8% above its October 21 closing price of $112.89

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 21 - M/I Homes Q3 revenue falls on weaker demand

  • Oct 19 - US homebuilder sentiment tumbles to near 14-1/2-year low in October

  • Oct 20 - US pending home sales tumble to record low in September


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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