PulteGroup Q3 home sale revenue falls 9% as demand weakens

PulteGroup

Today 11:38

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: ID:nBw4xDD10a

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.)