May 19, 2015, 9:06 AM
- April housing starts at a seasonally adjusted annualized rate of 1.14M were up 20% from March, and the strongest pace since the housing collapse began to pick up pace about eight years ago.
- Lennar (NYSE:LEN) +0.85%, PulteGroup (NYSE:PHM) +1.15%, KB Home (NYSE:KBH) +1.75%, Ryland (NYSE:RYL) +0.2%, D.R. Horton (NYSE:DHI) +1.4%, Hovnanian (NYSE:HOV) +1.9% premarket.
- ETFs: ITB, XHB
- Previously: Housing starts jump in April (May 19)
May 15, 2015, 12:18 PM
- The summer pattern for the builders is typically the opposite of the winter "hope trade," says Raymond James, noting the sector has underperformed the S&P 500 in 21 of the last 30 summers, with the average underperformance being 490 basis points.
- Not downgraded is WCI Communities (WCIC +1%), which remains a Strong Buy. "We see a special situation with one of the strongest growth stories in the industry, backed by a deep and highly valuable Florida land base, producing better-than-expected margins while trading at a deep discount (20%+ on most metrics) to its larger cap peers."
- Also not downgraded is D.R. Horton (DHI +0.4%) thanks to its exposure to first-time homebuyers.
- Downgraded, but still an Outperform is Toll Brothers (TOL +1.6%), thanks to the "unsurpassed quality" of its "remarkable land assets."
- Downgraded to Market Perform from Outperform: KB Home (KBH +1.8%), Lennar (LEN +0.1%), M.D.C. Holdings (MDC), PulteGroup (PHM +1.3%), Standard Pacific (SPF +0.5%), and Ryland (RYL +0.5%).
- Previously: Homebuilders downgraded across the board at Raymond James (May 15)
May 15, 2015, 9:07 AM
- Possibly spooked by the rout in the bond market and what higher interest rates could mean for homebuilders, Raymond James pulls Outperform ratings and cuts price targets on a wide swath of the sector.
- Ryland Group (NYSE:RYL), Standard Pacific (NYSE:SPG), Pulte Group (NYSE:PHM), M.D.C. Holdings (NYSE:MDC), Lennar (NYSE:LEN), and KB Home (NYSE:KBH) are all cut to Market Perform, while Toll Brothers (NYSE:TOL) is cut to Outperform from Strong Buy. It's unclear if D.R. Horton was similarly downgraded, but its price target is cut to $29 from $31.
- It's been a rough month for the lot of them, with all (excepting M.D.C.) lower by anywhere from 7%-14% as long-term interest rates have shot higher.
- PHM is down 1.2% premarket
- ETFs: ITB, XHB
May 6, 2015, 2:58 PM
- PulteGroup (NYSE:PHM) declares $0.08/share quarterly dividend, in line with previous.
- Forward yield 1.66%
- Payable July 2; for shareholders of record June 11; ex-div June 9.
Apr. 24, 2015, 9:11 AM
- The Q1 miss was the result of construction delays pushing deliveries into H2, says Susquehanna, maintaining its Positive rating and $26 price target on PulteGroup (NYSE:PHM). The team notes Pulte retained its full-year guidance and expects gross margins to be a solid 23%.
- Previously: PulteGroup -7.8% as Q1 results disappoint (April 23)
Apr. 23, 2015, 9:13 AM
Apr. 23, 2015, 7:42 AM
- Q1 net income of $55M or $0.15 per share vs. $75M and $0.19 a year ago.
- Home sales revenue of $1.1B as closings decline 2% to 3,365 homes, and ASP rises 2% to $323K.
- Net new orders of 5,139 homes up 6% in units, up 6% in value.
- Community count of 613 up 5%.
- Gross margin of 22.7% down 110 basis points.
- Backlogs of 7,624 homes up 6%. ASP in backlog of $336K is flat from a year ago.
- Repurchased 4.6M shares during quarter at average price of $21.75 each for total of $100M.
- Conference call at 8:30 ET
- Previously: PulteGroup misses by $0.05, misses on revenue (April 23)
- PHM -7.8% premarket
Apr. 23, 2015, 6:38 AM
- PulteGroup (NYSE:PHM): Q1 EPS of $0.15 misses by $0.05.
- Revenue of $1.13B (+0.9% Y/Y) misses by $110M.
Apr. 22, 2015, 10:52 AM
- D.R. Horton posted better-than-expected number for FQ2 (ended March 31), and calls the spring season so far a strong one. Management, however, slightly trimmed its guidance on operating margins for FQ3, and the stock is now lower by 4.8% on the session.
- Previously: Investors take profits after D.R. Horton beat (April 22)
- Lennar (LEN -0.8%), Ryland (RYL -0.9%), PulteGroup (PHM -1.8%), KB Home (KBH -0.9%), Toll Brothers (TOL -1.5%), Standard Pacific (SPF -1.2%)
- ETFs: ITB, XHB
- Previously: Treasury prices retreat after home sales number (April 22)
Apr. 16, 2015, 11:06 AM
- Housing starts bounced just 2% to 926K in March following February's supposedly weather-related plunge. Expectations had been for a 1.05M starts in March. Gains in the northeast and midwest in March were offset by declines in the south and west.
- Toll Brothers (TOL -2.4%), Lennar (LEN -2.1%), Hovnanian (HOV -2.8%), PulteGroup (PHM -2%), Ryland (RYL -2.7%), D.R. Horton (DHI -2%), KB Home (KBH -1.9%), Standard Pacific (SPF -2.7%), NVR (NVR -1.3%).
- Previously: Lame rebound for housing starts (April 16)
- Previously: Declines in the south and west hold back housing starts (April 16)
Apr. 9, 2015, 7:33 AM
- Both PulteGroup (NYSE:PHM) and Meritage Homes (NYSE:MTH) are vulnerable to a pullback after big runs (23% and 36% respectively) over the past six months, says JPMorgan, downgrading both to Underweight from Neutral.
- It's probably not a bad idea to take profits in the entire sector, reckons JPMorgan, calling it "highly unlikely" homebuilders boost gross margin guidance in their upcoming earnings calls.
Mar. 24, 2015, 10:08 AM
- New home sales in February at a seasonally-adjusted annualized rate of 539K is the fastest pace in seven years. With January's revision up to 500K (from 481K), it's the fist time sales have hit 500K for two or more consecutive months since early 2008.
- The median sales price rose 2.6% to $275.5K, and inventory stands at 4.7 months of homes on the market at the current sales pace, down from 5.7 months in January.
- Homebuilder ETFs: ITB +1.1%, XHB +1.1%.
- Toll Brothers (TOL +1.3%), Hovnanian (HOV +2.9%), Pulte (PHM +1.8%), Ryland (RYL +1.5%), Lennar (LEN +1.7%), KB Home (KBH +2.4%), Standard Pacific (SPF +1.4%).
- Full report
- Previously: New home sales fly past expectations in February (March 24)
Mar. 20, 2015, 11:38 AM
- A good week for the homebuilders gets better after KB Home's FQ1 cruised through estimates, and the company said recently contracting profit margins are set to turn the other way for the rest of the year (the stock's up 7%).
- ITB +2.3%, XHB +1.6%
- Toll Brothers (TOL +3.2%), Hovnanian (HOV +2.5%), Lennar (LEN +3.6%), Pulte (PHM +2.8%), M/I Homes (MHO +3.6%), D.R. Horton (DHI +2.1%), Ryland (RYL +2.4%), Standard Pacific (SPF +2.8%).
- Previously: KB Home on the move after earnings beat, margin comments (March 20)
Mar. 9, 2015, 8:30 AM
- The team takes profits at Lennar (NYSE:LEN) - downgrading to Neutral from Buy after a 33% run higher over the last seven months, and moves the money into PulteGroup (NYSE:PHM) with an upgrade to Buy from Neutral. For its part, Pulte is higher by about 20% over the same time frame.
- LEN -0.7%, PHM +0.5% premarket
- Previously: Homebuilders upgraded at JMP Securities (March 9)
Mar. 5, 2015, 11:20 AM
- First-time homebuyer budgets (how much they're willing to spend) are up 24% vs. 2014, according to Bank of Montreal's (U.S.) homebuying report, and the expected down payment slips to 13% from 16% a year ago. 77% of those surveyed have made "lifestyle cutbacks" to save for a home vs. 72% in 2014.
- Turning to Texas and the effect of the energy crash, Susquehanna checks show the spring selling season is shaping up to be stronger than last year. The team visited entry-level offerings from D.R. Horton (NYSE:DHI), Pulte Group (NYSE:PHM), Lennar (NYSE:LEN), and Beazer (NYSE:BZH), and found things "surprisingly strong."
- The news supports management views of higher sales and margins, says Susquehanna, and many builders indicate price hikes of 3-5% in recent months given the strong demand. The team also notes getting a mortgage seems like less of an issue, labor is still tight, and rental costs are, in part, behind the boosted entry-level interest.
- ETFs: XHB, ITB
Feb. 24, 2015, 11:09 AM
- Toll Brothers cruised past FQ1 estimates and boosted guidance, and Meritage Homes reported big increases in new orders in January. Both of those names are ahead more than 3%.
- ETFs: ITB +1.85%, XHB +1.1%
- Others: Lennar (LEN +2.5%), PulteGroup (PHM +1.7%), Hovnanian (HOV +1.4%), Ryland (RYL +1.8%), KB Home (KBH +2%), Standard Pacific (SPF +3%), D.R. Horton (DHI +1.4%).
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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