PulteGroup Increases Sales but Misses Estimates on Earnings
PulteGroup (NYS: PHM) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), PulteGroup missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share dropped significantly.
Gross margins increased, operating margins shrank, net margins dropped.
PulteGroup logged revenue of $1.28 billion. The 16 analysts polled by S&P Capital IQ predicted revenue of $1.39 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $1.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.26. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. Non-GAAP EPS of $0.26 for Q2 were 136% higher than the prior-year quarter's $0.11 per share. GAAP EPS of $0.09 for Q2 were 18% lower than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.1%, 270 basis points better than the prior-year quarter. Operating margin was 2.9%, 140 basis points worse than the prior-year quarter. Net margin was 2.8%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.63 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $6.01 billion. The average EPS estimate is $1.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 621 members out of 1,295 rating the stock outperform, and 674 members rating it underperform. Among 330 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give PulteGroup a green thumbs-up, and 174 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PulteGroup is hold, with an average price target of $22.97.
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The article PulteGroup Increases Sales but Misses Estimates on Earnings originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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