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ATLANTA - PulteGroup, Inc. (NYSE: PHM) reported fourth quarter earnings that significantly exceeded analyst expectations, sending its stock soaring over 5% in early trading.
The homebuilder posted adjusted earnings per share of $4.43, handily beating the consensus estimate of $3.27. Revenue came in at $4.92 billion, also topping expectations of $4.65 billion.
PulteGroup’s strong performance was driven by a 13% increase in home sale revenues to $4.7 billion. The company closed on 8,103 homes during the quarter, up 6% year-over-year. The average selling price rose 6% to $581,000.
"PulteGroup’s strong fourth quarter financial results completed a record-setting year," said Ryan Marshall, President and CEO. He noted the company generated nearly $18 billion in revenues and $3.1 billion in net income for the full year 2024.
Despite elevated mortgage rates impacting buyer demand, Marshall said operational changes and targeted sales incentives have positioned the company well for the upcoming spring selling season.
The company’s reported home sale gross margin was 27.5% in Q4, down from 28.9% a year ago. Net new orders were relatively flat at 6,167 homes.
PulteGroup repurchased $320 million of common shares during the quarter. The Board also approved a $1.5 billion increase to its share repurchase authorization.
With its stock up over 5% following the release, investors are clearly impressed by PulteGroup’s ability to deliver strong results in a challenging housing market environment.
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