PulteGroup's Q3 home sale revenue falls 2%

Overview

• PulteGroup Q3 home sale rev decreases 2% yr/yr to $4.2 bln

• Net income for Q3 falls to $586 mln from $698 mln last year

• Company repurchased 2.4 mln common shares for $300 mln in the quarter

Outlook

• Company monitoring buyer demand affected by consumer confidence and affordability challenges

Result Drivers

• HOME SALE REVENUE DECLINE - Co attributes 2% decrease in home sale revenues to a 5% drop in closings, partially offset by a 3% increase in average sales price

• NET NEW ORDERS DECLINE - Co reports a 6% decrease in net new orders due to weaker consumer confidence and ongoing affordability challenges

• FINANCIAL SERVICES INCOME DROP - Lower closing volumes and decreased mortgage capture rate led to reduced pre-tax income in financial services

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and 1 "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 $140.00, about 12% above its October 20 closing price of $123.27

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw4w0g2Wa

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