We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings per share (EPS) and revenues beat the Zacks Consensus Estimate by 8% and 5.6%, respectively. On a year-over-year basis, both metrics increased 6.7% and 14.7%, respectively.
PulteGroup’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 12.3%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Trend in PHM’s Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s EPS has decreased to $2.47 from $2.48 in the past seven days. The estimated figure indicates a 13.9% decrease from the year-ago EPS of $2.87.
The consensus mark for revenues is pegged at $3.86 billion, implying a 2.2% year-over-year decline.
Factors Likely to Shape PulteGroup’s Q1 Earnings
Revenues
PulteGroup's first-quarter top line is likely to have decreased year over year, primarily due to the ongoing affordability challenges in the housing market. The company is likely to have faced pressure from high mortgage rates, which continue to impact homebuyers. Additionally, the Fed's pause on further rate cuts, alongside recently imposed tariffs, is likely to have contributed to an inflationary environment affecting demand.
PulteGroup expects home closings to be approximately 6,400-6,800 units, down from 7,095 units a year ago. Our model predicts home closings to decline 4.8% year over year to 6,754 units.
Although the company’s balanced operating model, mortgage rate buydown program and favorable home pricing are likely to have supported its underlying prospects, the current uncertainties surrounding the housing market are expected to have overshadowed the top-line performance.
Segment-wise, for first-quarter 2025, our model predicts overall Homebuilding revenues (which contributed 97.6% to total revenues in 2024) to decrease 0.8% year over year to $3.83 billion, due to lower home closings. Our model expects financial services revenues (which contributed 2.4% to total revenues in 2024) to increase 2.4% year over year to $94.6 million.
Nonetheless, PulteGroup’s focus on entry-level homes, a prudent land investment strategy and affordable product offerings is likely to have somewhat aided the top line. PHM's pricing strategy focuses on balancing affordability challenges faced by homebuyers and shifting market dynamics. The company expects a higher average selling price (ASP) for the quarter between $560,000 and $570,000 compared with the year-ago level of $538,000. Our model predicts the ASP of homes closed to increase 4.1% year over year to $560,200.
Margins
PulteGroup is likely to have faced significant margin pressure in the first quarter, due to the need for incentives to manage affordability concerns while maintaining profitability. The company's bottom line is expected to have decreased year over year in the quarter, due to higher incentive costs stemming from competitive market dynamics. That said, prudent cost-saving efforts might have partly mitigated the risks.
The company expects home sales gross margins to be approximately 27% for the quarter, down from 29.6% reported in the year-ago period. Our model predicts homebuilding gross margins to be 26.7% for the quarter, down 260 basis points from the year-ago period.
Orders & Backlogs
Our model expects the company’s net new orders to increase 4.4% year over year to 8,752 units in the quarter. We expect the total backlog to decline 9.5% to 12,151 units and the total backlog value to decrease 6% year over year to $7.71 billion.
What the Zacks Model Unveils for PHM
Our proven model predicts an earnings beat for PulteGroup for the quarter to be reported. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP of PHM: PulteGroup has an Earnings ESP of +0.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PHM’s Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other stocks from the Zacks Construction sector that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
MTZ’s earnings beat estimates in each of the last four quarters, the average surprise being 31.6%. The company’s earnings for the quarter to be reported are expected to increase 361.5%.
Meritage Homes Corporation (MTH - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank of 3.
MTH’s earnings beat estimates in each of the last four quarters, the average surprise being 46.1%. The company’s earnings for the quarter to be reported are expected to decrease 32.4%.
Martin Marietta Materials, Inc. (MLM - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank of 3.
MLM’s earnings beat estimates in two of the last four quarters and missed twice, the average negative surprise being 1.7%. The company’s earnings for the quarter to be reported are expected to decrease 4.7%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
PulteGroup Gears Up to Report Q1 Earnings: Things to Keep in Mind
PulteGroup Inc. (PHM - Free Report) is scheduled to report first-quarter 2025 results on April 22, before the opening bell.
In the last reported quarter, the company’s earnings per share (EPS) and revenues beat the Zacks Consensus Estimate by 8% and 5.6%, respectively. On a year-over-year basis, both metrics increased 6.7% and 14.7%, respectively.
PulteGroup’s earnings topped the consensus mark in each of the trailing four quarters, the average surprise being 12.3%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Trend in PHM’s Estimate Revision
The Zacks Consensus Estimate for the to-be-reported quarter’s EPS has decreased to $2.47 from $2.48 in the past seven days. The estimated figure indicates a 13.9% decrease from the year-ago EPS of $2.87.
PulteGroup, Inc. Price and EPS Surprise
PulteGroup, Inc. price-eps-surprise | PulteGroup, Inc. Quote
The consensus mark for revenues is pegged at $3.86 billion, implying a 2.2% year-over-year decline.
Factors Likely to Shape PulteGroup’s Q1 Earnings
Revenues
PulteGroup's first-quarter top line is likely to have decreased year over year, primarily due to the ongoing affordability challenges in the housing market. The company is likely to have faced pressure from high mortgage rates, which continue to impact homebuyers. Additionally, the Fed's pause on further rate cuts, alongside recently imposed tariffs, is likely to have contributed to an inflationary environment affecting demand.
PulteGroup expects home closings to be approximately 6,400-6,800 units, down from 7,095 units a year ago. Our model predicts home closings to decline 4.8% year over year to 6,754 units.
Although the company’s balanced operating model, mortgage rate buydown program and favorable home pricing are likely to have supported its underlying prospects, the current uncertainties surrounding the housing market are expected to have overshadowed the top-line performance.
Segment-wise, for first-quarter 2025, our model predicts overall Homebuilding revenues (which contributed 97.6% to total revenues in 2024) to decrease 0.8% year over year to $3.83 billion, due to lower home closings. Our model expects financial services revenues (which contributed 2.4% to total revenues in 2024) to increase 2.4% year over year to $94.6 million.
Nonetheless, PulteGroup’s focus on entry-level homes, a prudent land investment strategy and affordable product offerings is likely to have somewhat aided the top line. PHM's pricing strategy focuses on balancing affordability challenges faced by homebuyers and shifting market dynamics. The company expects a higher average selling price (ASP) for the quarter between $560,000 and $570,000 compared with the year-ago level of $538,000. Our model predicts the ASP of homes closed to increase 4.1% year over year to $560,200.
Margins
PulteGroup is likely to have faced significant margin pressure in the first quarter, due to the need for incentives to manage affordability concerns while maintaining profitability. The company's bottom line is expected to have decreased year over year in the quarter, due to higher incentive costs stemming from competitive market dynamics. That said, prudent cost-saving efforts might have partly mitigated the risks.
The company expects home sales gross margins to be approximately 27% for the quarter, down from 29.6% reported in the year-ago period. Our model predicts homebuilding gross margins to be 26.7% for the quarter, down 260 basis points from the year-ago period.
Orders & Backlogs
Our model expects the company’s net new orders to increase 4.4% year over year to 8,752 units in the quarter. We expect the total backlog to decline 9.5% to 12,151 units and the total backlog value to decrease 6% year over year to $7.71 billion.
What the Zacks Model Unveils for PHM
Our proven model predicts an earnings beat for PulteGroup for the quarter to be reported. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP of PHM: PulteGroup has an Earnings ESP of +0.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PHM’s Zacks Rank: The company currently carries a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other stocks from the Zacks Construction sector that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
MasTec, Inc. (MTZ - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MTZ’s earnings beat estimates in each of the last four quarters, the average surprise being 31.6%. The company’s earnings for the quarter to be reported are expected to increase 361.5%.
Meritage Homes Corporation (MTH - Free Report) currently has an Earnings ESP of +0.62% and a Zacks Rank of 3.
MTH’s earnings beat estimates in each of the last four quarters, the average surprise being 46.1%. The company’s earnings for the quarter to be reported are expected to decrease 32.4%.
Martin Marietta Materials, Inc. (MLM - Free Report) currently has an Earnings ESP of +4.48% and a Zacks Rank of 3.
MLM’s earnings beat estimates in two of the last four quarters and missed twice, the average negative surprise being 1.7%. The company’s earnings for the quarter to be reported are expected to decrease 4.7%.