Oct. 22, 2015, 7:26 AM
- Q3 net income after item of $119M or $0.33 per share vs. $141M and $0.37 one year ago.
- Home sales revenue of $1.5B down from $1.6B, with closing lower by 6% to 4,356, and the ASP up 1% to $336K.
- Home sale gross margin of 23.6% up 70 basis points.
- Net new orders of 4,092 homes up 8% in units, up 17% in dollar terms.
- Backlogs of $3.1B and 8,734 homes up 18% in dollars and 10% in units. ASP in backlog of $354K up 7%.
- $586M invested in land acquisition during quarter, bringing land spend this year to $1.5B.
- 5.9M shares repurchased at average price of $20.29 each. Last night's close was $19.45.
- Conference call at 8:30 ET
- Previously: PulteGroup misses by $0.10, misses on revenue (Oct. 22)
- PHM flat premarket
Oct. 22, 2015, 6:33 AM
- PulteGroup (NYSE:PHM): Q3 EPS of $0.33 misses by $0.10.
- Revenue of $1.51B (-5.0% Y/Y) misses by $260M.
Oct. 21, 2015, 5:30 PM
- AB, ACAT, ACOR, ADS, AEP, ALK, APOL, ASPS, BCC, BEN, BHE, BMS, CAB, CAM, CAT, CBU, CEMP, COR, CRS, CY, DAN, DGX, DHR, DLX, DNKN, DOW, DPS, DST, EQM, EQT, FAF, FCX, FNB, GMT, GPK, GRA, HBAN, HUB.B, IVC, JNS, LAZ, LLY, LUV, MCD, MHO, MINI, MJN, MMM, NDAQ, NUE, NWE, ORI, PCP, PDS, PENN, PH, PHM, PRLB, PTEN, R, RCI, RS, RTN, SIRI, SJR, SNA, SQNS, STC, SWK, TCB, TROW, UA, UAL, UNP, USG, UTEK, WAB, WBC, WCC, XRS
Oct. 13, 2015, 1:41 PM
- Screening its U.S. coverage universe to find companies where its analysts views diverge widely from that of the consensus, and then narrowing further to those names with high conviction, Credit Suisse puts out a list of eight buys and 6 sells.
- The full report with thesis on each name is here.
- The buy list: Box (NYSE:BOX), Boyd Gaming (NYSE:BYD), CF Industries (NYSE:CF), Ingredion (NYSE:INGR), L-3 Communications (NYSE:LLL), LaSalle Hotel Properties (NYSE:LHO), Nationstar Mortgage (NYSE:NSM), SeaWorld Entertainment (NYSE:SEAS), Sysco (NYSE:SYY), Wal-Mart (NYSE:WMT), Weatherford (NYSE:WFT), and WisdomTree (NASDAQ:WETF).
- The sells: Aon (NYSE:AON), Dollar Tree (NASDAQ:DLTR), Hyatt Hotels (NYSE:H), Macerich (NYSE:MAC), Pulte (NYSE:PHM), Realogy (NYSE:RLGY).
Oct. 13, 2015, 9:51 AM
- Upgraded to Overweight is Toll Brothers (TOL -0.1%), and upgraded to Equal Weight from Underweight is KB Home (KBH +0.5%). The TOL price target of $44 is nearly 20% above last night's close.
- Downgraded to Under Weight is Pulte Group (PHM -2.3%), with the price target cut to $18 from $22 (current price is $19.64).
- Checking relative performance, Toll Brothers is up 8.4% YTD, while Pulte is down 8.4% and KBHome is down 10.2%.
Sep. 24, 2015, 10:15 AM
- SIngle-family new home sales in August at a seasonally-adjusted annualized rate of 552K were up 5.7% from July (itself upwardly revised to 522K from 505K). August's pace was also up 21.6% from a year ago.
- By region, Northeast sales of 36K rose from 29K, Midwest to 60K vs. 66K, South 319K from 297K, and West 137K vs. 130K.
- Despite the strong August results, homebuilders remain lower alongside the broader market.
- Leading the way lower is KB Home (KBH -3.4%) which reported an earnings beat this morning, but rising land costs did eat into profit margins.
- ETFs: ITB, XHB
- Toll Brothers (TOL -0.4%), PulteGroup (PHM -0.8%), Lennar (LEN -0.9%), D.R. Horton (DHI -0.8%), Standard Pacific (SPF -1.6%), Taylor Morrison (TMHC -1.5%).
Sep. 17, 2015, 3:49 PM
- Outperforming alongside the big dividend payers are the homebuilders after the FOMC refrained from hiking rates today, but still all but promises tighter policy before the year is out. The big gains in homebuilders are in contrast to the S&P 500 which is flat.
- The inaction has sparked a major rally in bonds across the curve, with the 10-year yield lower by ten basis points to 2.20% and the two-year yield down a full twelve basis points to 0.68%.
- Earlier today, August housing starts disappointed, and July starts were revised sharply lower.
- Previously: August housing starts disappoint; July revised sharply lower (Sept. 17)
- Toll Brothers (TOL +1.2%), Lennar (LEN +1.5%), Hovnanian (HOV +6%), PulteGroup (PHM +1.1%), Ryland (RYL +2.1%), D.R. Horton (DHI +2%), KB Home (KBH +2%)
- ETFs: ITB, XHB
Sep. 11, 2015, 8:04 AM
- As a group, the three are higher on the year, but are considerably lower since April 1, with Meritage Homes (NYSE:MTH) off 22%, Toll Brothers (NYSE:TOL) 6%, and PulteGroup (NYSE:PHM) 7.8%.
- All three are upgraded to Neutral from Underweight.
- Alongside these moves, JPMorgan also downgraded two other homebuilders.
Sep. 9, 2015, 4:21 PM
- PulteGroup (NYSE:PHM) declares $0.08/share quarterly dividend, in line with previous.
- Forward yield 1.55%
- Payable Oct. 2; for shareholders of record Sept. 22; ex-div Sept. 18.
Jul. 29, 2015, 10:38 AM
- Sales orders gained a fast 22% year-over-year in the quarter ended June 30, writes Kris Hudson, lower than some analysts had hoped, but still a strong number. Sequentially though, orders for D.R. Horton, PulteGroup (NYSE:PHM), M/I Homes (NYSE:MHO), and NVR all slowed, according to Housing ResearchCenter, though normal seasonality would call for an increase. Higher interest rates are likely to blame.
- D.R. Horton's average sales price of $289K rose 2.9% Y/Y, keeping in place a pattern of low-single digit gains over the past year. It's not necessarily that builders are lowering prices, but the mix has changed, with D.R. Horton in particular building larger numbers of less-expensive homes. The company's Express brand of entry-level homes - started in 2013 - accounted for 19% of orders in the last quarter. Still the percentage of first-time homebuyers of 41% was flat Y/Y, and down from 44% two years ago.
- Credit remains tough to come by, with the average FICO score of D.R. Horton-originated mortgages of 716 last quarter vs. 719 a year ago and 723 two years ago.
- ETFs: ITB, XHB
- Previously: D.R. Horton profit nearly doubles (July 28)
Jul. 23, 2015, 7:52 AM
- Q2 net income of $103M or $0.28 per share includes a pretax benefit of $27M or $0.05 per share. Income in Q2 one year ago was $42M or $0.11 per share and included pretax charges of $88M or $0.14 per share.
- Consensus for Q2 was $0.26 per share.
- Home sales revenue of $1.2B flat Y/Y, with ASP of $332K up 1%, closings of 3,744 homes down 1%.
- New orders of 5,118 homes up 7% Y/Y; value of new orders of $1.8B up 11%.
- Home sale gross margin of 23.3% down 30 basis points Y/Y.
- Backlog of 8.998 homes valued at $3.1B vs. 8,179 homes and $2.8B a year ago. ASP of homes in backlog of $343K up 1%.
- 10.7M shares repurchased during quarter at an average price of $19.90 each, total of $213M.
- Conference call at 8:30 ET
- Previously: PulteGroup EPS of $0.28 (July 23)
- PHM flat premarket
Jul. 23, 2015, 6:34 AM
- PulteGroup (NYSE:PHM): Q2 EPS of $0.28 may not be comparable to consensus of $0.26.
- Revenue of $1.28B (-0.8% Y/Y) misses by $90M.
Jul. 22, 2015, 10:36 AM
- In the latest data point signaling the housing recovery has shifted into another gear, the NAR earlier reported a 3.2% gain in the seasonally adjusted annualized rate of existing home sales to 5.49M in June.
- Sales are at their highest pace since February 2007 and are 9.6% above the pace of one year ago.
- The median price of $236.4K is up 6.5% Y/Y and surpasses the peak set in July 2006.
- ETFs: ITB +1.5%, XHB +1.5%
- Toll Brothers (TOL +2%), Lennar (LEN +1.7%), KB Home (KBH +1.9%), Pulte (PHM +2.1%), D.R. Horton (DHI +2.1%), Hovnanian (HOV +0.9%), Ryland (RYL +3.1%)
- Previously: Existing home sales rise to fastest pace in eight years (July 22)
Jun. 24, 2015, 9:47 AM
- Lennar is up 4.5% after blowing through estimates, including posting gross and operating margins ahead of previous guidance.
- ITB +1.3%, XHB +0.7%
- Toll Brothers (TOL +1.7%), Ryland (RYL +0.7%), KB Home (KBH +1.5%), Pulte (PHM +2%), D.R. Horton (DHI +1.7%), Hovnanian (HOV +1.5%), Beazer (BZH +1.6%).
- Previously: Lennar in high cotton in FQ2, up 4.7% post-earnings (June 24)
- Previously: Lennar beats by $0.15, beats on revenue (June 24)
Jun. 19, 2015, 10:09 AM
- KB Home CEO Jeffrey Mezger is confident of his company's ability to achieve "measurable year-over-year earnings growth in H2" after reporting new order growth of 33% in units and 38% in dollars in FQ2, and backlog growth of 39% in units and 57% in dollars.
- KB Home is up 6%, leading the ITB +1.4%, and XHB +0.8% even as the major averages slip.
- Toll Brothers (TOL +2.3%), Hovnanian (HOV +2.7%), Lennar (LEN +3%), Ryland (RYL +2%), D.R. Horton (DRI +2.5%), Pulte (PHM +2.5%)
- Previously: KB Home gains following earnings beat (June 19)
- Previously: KB Home beats by $0.02, beats on revenue (June 19)
Jun. 15, 2015, 9:44 AM
- Zigging higher while the rest of the market zags sharply lower are the homebuilders following this weekend's merger of Ryland Homes and Standard Pacific.
- While there have been a number of smaller deals over the past year, this one is more sizable, setting off hope of a broader - and necessary, according to some - consolidation in the fragmented sector.
- Lennar (LEN +1.9%), Toll Brothers (TOL +1.4%), M.D.C. Holdings (MDC +2.3%), M/I Homes (MHO -0.5%), NVR (NVR), D.R. Horton (DHI +1.5%), KB Home (KBH +0.7%), Beazer Homes (BZH +1.2%), PulteGroup (PHM +1.6%), Hovnanian (HOV flat)
- Previously: Industry eyes Ryland/Standard Pacific merger (June 15)
PulteGroup, Inc. is engaged in the homebuilding business. It is also engaged in the mortgage banking and title operations. The company's homebuilding business includes the acquisition and development of land primarily for residential purposes within the U.S. and the construction of housing on... More
Sector: Industrial Goods
Industry: Residential Construction
Country: United States
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