Back to top

Image: Bigstock

Homebuilding Segment to Aid PulteGroup (PHM) Q1 Earnings

Read MoreHide Full Article

PulteGroup, Inc.’s (PHM - Free Report) Homebuilding segment — accounting for 97% of total revenues — is expected to have registered growth, given strong housing market fundamentals in the United States. Consequently, the segment is likely to contribute to overall revenues when it reports first-quarter 2021 results on Apr 27.

The company has exhibited a solid performance so far this year, with the stock climbing 25%, having comfortably outperformed the industry’s growth of 22.1%. PulteGroup — which shares space with D.R. Horton, Inc. (DHI - Free Report) , Lennar (LEN - Free Report) and KB Home (KBH - Free Report) in the Zacks Building Products - Home Builders industry — has been riding high on its focus on entry-level buyers and protecting liquidity, prudent management of cash flows as well as land investment strategy.




Click here to know how the company’s overall Q1 performance is expected to be.

A Look at Q1 Segmental Performance

PulteGroup’s Homebuilding segment is expected to have registered growth, courtesy of higher deliveries and average selling price or ASP.

The Zacks Consensus Estimate for Homebuilding revenues of $2.78 billion suggests an increase of 24% on a year-over-year basis.

PulteGroup expects ASP within $430,000-$435,000, indicating an increase from $413,000 registered a year ago. It expects deliveries within 6,300-6,600 homes. At the midpoint, the guided range indicates an increase of 20% from 5,373 units in the year-ago period.

The consensus mark for ASP is $433,000, which points to a 4.8% year-over-year improvement. For the quarter to be reported, the consensus mark for the number of homes closed is 6,454, which points to 20.1% year-over-year growth.

Solid demand arising from prospering U.S. housing market scenario, prudent land investment strategy and focus on entry-level buyers is expected to have benefited PulteGroup in the first quarter.

Overall Q1 Earnings & Revenue Expectations

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.19 per share, indicating 60.8% growth from the year-ago figure of 74 cents. Also, the consensus mark for revenues is $2.83 billion, suggesting 23.5% year-over-year growth.

PulteGroup — a Zacks Rank #3 (Hold) company — surpassed earnings estimates in each of the trailing 17 quarters. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.  

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>

Published in