PHM - PulteGroup Q2 earnings beat consensus as demand stays strong

2023-07-25 07:26:00 ET

PulteGroup ( NYSE: PHM ) Q2 earnings, reported on Tuesday, topped the Wall Street consensus as low housing supply continued to keep demand for homes strong.

"While there remains an extremely limited supply of existing homes, we have an expanded community count and a much improved supply chain that has PulteGroup well positioned to meet buyer demand going forward," said President and CEO Ryan Marshall.

Excluding a $0.21 per share insurance benefit, Q2 EPS of $3.00 beat the $2.54 consensus. It rose from $2.35 in Q1 2023 and from $2.73 in Q2 2022. Including the insurance benefit, Q2 2023 net EPS was $3.21.

PulteGroup ( PHM ) shares fell 1.4% in Tuesday premarket trading.

Revenue of $4.19B, topping the $4.02B consensus, increased from $3.58B in the prior quarter and from $3.88B in the year-ago quarter.

Closings during the quarter increased 5% Y/Y to 7,518 homes at an average sales price of $540K. That compares with 6,394 homes and average sales price of $545K in Q1.

Homebuilding gross margin increased to 29.6% from 29.1% in Q1 and dropped from from 31.3% in the year-ago quarter.

Net new orders rose 9% from a year ago to $4.3B, and compared with $3.8B in Q1. The number of net new orders, at 7,947, rose 24% Y/Y and compared with 7,354 in Q1.

Unit backlog of 13,558 homes with a value of $8.2B at the end of Q2 compared with 13,129 homes with a value of $7.9B at the end of Q1.

During the quarter, PulteGroup ( PHM ) repurchased 3.7M of its shares for $250M at an average price of $68.31 per share.

Conference call at 8:30 AM.

Earlier, PulteGroup ( PHM ) GAAP EPS of $3.21 beats by $0.71, revenue of $4.19B beats by $170M

More on PulteGroup:

• Previous PulteGroup income statements
• D.R. Horton, PulteGroup placed on upside 30-day catalyst watch at Citi
• PulteGroup: No Margin of Safety based on a Cyclical Perspective
• PulteGroup Is Building Long-Term Shareholder Value

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