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Pulling his Outperform rating on PulteGroup (PHM -2.2%), analyst Buck Horne takes note of the escalating battle between the board and the Pulte family, and the uncertainty its creates over who will lead the company going forward.
- As for operations, Horne mentions the company's unwillingness to boost guidance despite the Q1 beat - a signal that dilution from the Wieland purchase could be greater than expected.
- Finally, there was the sharp deceleration in per-community absorption across all brands, says Horne. Overall order growth was up 10% Y/Y, but absorption was flat after trending closer to 10% Y/Y in Q4.
- Now read: Pulte Homes' Founder's Letter To The Board (April 13)