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PulteGroup, Inc. (PHM), headquartered in Atlanta, Georgia, is in the home building business, having delivered almost 800,000 homes with operations in 24 states and over 40 major markets. Valued at $21.87 billion by market cap, the company also offers various home designs, including single-family detached, townhomes, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West brands. The leading homebuilder is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Tuesday, July 23.
Ahead of the event, analysts expect PHM to report a profit of $3.20 per share on a diluted basis, up 6.7% from $3 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, PHM repurchased $246 million of common shares, and its quarter-end backlog was 13,430 homes valued at $8.2 billion.
For fiscal 2024, analysts expect PHM to report EPS of $12.64, up 7.9% from $11.72 in fiscal 2023.
PHM stock has outperformed the S&P 500’s ($SPX) 25.2% gains over the past 52 weeks, with shares up 34.8% during this period. Similarly, it outshined the S&P 500 Cons Disc Sector SPDR (XLY) 10.1% gains over the same time frame.
On Jul.2, PHM shares closed down more than 1% after Raymond James and Citigroup downgraded its peer Lennar Corporation (LEN). Citi cut LEN’s ratings from Buy to Neutral, and Raymond James downgraded its outlook on the company from “outperform” to “market perform,” citing concerns about a sluggish Florida housing market.
On Jun. 18, PHM shares closed down more than 3% after peer LEN forecasted Q3 new orders between 20,500 and 21,000, below the consensus forecast of 21,095.
On Apr. 23, PHM shares closed up more than 4% after the company reported its Q1 results. Its revenue of $3.95 billion beat the consensus estimates of $3.60 billion. The company’s adjusted EPS was $2.87, surpassing the Wall Street estimates of $2.36. PHM’s net new orders rose 14% year over year to 8,379 homes, and its net income was $663 million.
Analysts’ consensus opinion on PHM stock is bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, 10 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and five recommend a “Hold” rating. The average analyst price target for PHM is $130.62, indicating a 25.7% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
