PHM - PulteGroup stock climbs as Q1 earnings blow past consensus share buyback boosted

2023-04-25 10:22:38 ET

PulteGroup, Inc. ( NYSE: PHM ) stock advanced 2.2% in Tuesday morning trading after the homebuilder turned in Q1 earnings that easily topped Wall Street expectations as "we realized strong orders, closings and margins" during the quarter, said President and CEO Ryan Marshall.

Shares were also in the green as the company boosted its share buyback program by $1.0B, bringing its total share repurchase authorization to $1.2B.

"With interest rates more stable and the supply of new and existing homes generally in balance with demand, we remain optimistic about the housing industry as we navigate this phase of the housing cycle,” he added.

Q1 adjusted EPS of $2.35, exceeding the average analyst estimate of $1.82, fell from $3.63 in the previous quarter and jumped from $1.83 a year before. Revenue of $3.58B, vs. $3.27B consensus, retreated from $5.17B in Q4 2022 and rose from $3.15B in Q1 2022.

Closings during the quarter of increased 6% Y/Y to 6,394 homes and average sales price gained 9% to $545K. That compares with 8,848 home closings in Q4 2022 and average sales price of $571K.

Net new orders dropped 20% from a year ago to $3.8B, as higher interest rates weighed. The number of net new orders of 7,354 fell 8% Y/Y.

Cancelation rate improved to 13% from 32% in Q4 2022 and rose from 4% in the year-earlier quarter.

Unit backlog was 13,129 homes with a value of $7.9B compared with Q4 backlog of 12,169 homes with a value of $7.7B.

Earlier, PulteGroup GAAP EPS of $2.35 beats by $0.54, revenue of $3.58B beats by $310M .

More on PulteGroup

• PulteGroup: Inexpensive, High ROE and ROC, But A Risky Industry

• PulteGroup Inc.: Focused On Generating Returns On Shareholder Value

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