Pulte Homes reaffirmed its Q4 guidance Monday despite poor demand and elevated supply levels. A month ago, the homebuilder stood by its earlier forecast of income from continuing operations in the range of $0.10 per share to breakeven. "[W]e remain committed to our previous guidance for fourth quarter pre-impairment earnings and cash position, and we continue to improve our already strong balance sheet," said Pulte CEO Richard J. Dugas, Jr. in a release. "Our teams continue to do an outstanding job selling and closing standing inventory and lowering overall land investment levels, all in an effort to generate cash and give Pulte maximum flexibility entering 2008." Pulte Homes shares closed down 4.9% at $9.16 Monday but then rebounded 4.8% to $9.60 in AH trading following the statement.
Commentary: Caveat Emptor: The Tumbling Housing Market • No Point in Bottom-Fishing the Homebuilders
Stocks to watch: PHM. Competitors: CTX, DHI, LEN. ETFs: ITB
Earnings call transcript: Pulte Homes Q3 2007