Homebuilding company PulteGroup (NYSE:PHM) will be reporting earnings this Thursday before market hours. Here’s what you need to know.
PulteGroup beat analysts’ revenue expectations last quarter, reporting revenues of $3.98 billion, down 9.6% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.
Is PulteGroup a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PulteGroup’s revenue to decline 5.8% year on year, a further deceleration from the 1.6% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PulteGroup has a history of exceeding Wall Street’s expectations.
Looking at PulteGroup’s peers in the industrials segment, some have already reported their Q3 results, giving us a hint as to what we can expect. KB Home’s revenues decreased 20% year on year, meeting analysts’ expectations, and Lennar reported a revenue decline of 8.7%, falling short of estimates by 3.2%. KB Home traded down 3% following the results while Lennar was up 1.7%.
Read our full analysis of KB Home’s results here and Lennar’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the industrials stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.1% on average over the last month. PulteGroup is down 3.5% during the same time and is heading into earnings with an average analyst price target of $135.35 (compared to the current share price of $114.78).
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