©Reuters. PulteGroup (PHM) declines in fourth-quarter revenue, misses margin
Pulte Group (NYSE:) stock fell 1% in premarket trading Tuesday after the homebuilder missed Wall Street's expectations for fourth-quarter sales.
Fourth-quarter earnings per share (EPS) was reported at $3.28, down from $3.85 in the year-ago quarter and beating consensus estimates of $3.21. Revenues fell 17% year over year to $4.29 billion, falling short of analysts' expectations of $4.48 billion.
The number of homes closed in the quarter was 7,615, compared to analysts' expectations of 8,026, down 14% from a year earlier. Net new orders rose 57% year over year to 6,214, beating Wall Street's expectations of 5,675.
The company's gross profit margin on home sales was 28.9% in the fourth quarter, down from 29.4% in the same period last year.
Pulte Group reported pre-tax profit of $946.8 million, down 19% from the same period last year, but ahead of expectations of $922.5 million.
“While macroeconomic activity has fluctuated over the years, a strong job market, declining interest rates, and limited existing home inventory will lead to a strong outlook for 2024,” said Ryan Marshall, CEO and president of Pulte Group. “This is expected to be a year of increased demand for home purchases.”
Meanwhile, Pulte Group also increased its share buyback authorization by $1.5 billion, bringing the total amount to $1.8 billion.
“Given Pulte Group's record earnings of $11.72 per share and operating cash flow of $2.2 billion in fiscal 2023, we believe we can increase our stock repurchase authorization by $1.5 billion. ' he added.
