Here’s what to expect from PulteGroup’s next earnings results…

PulteGroup, Inc. (PHM), headquartered in Atlanta, Georgia, is a homebuilder that has delivered nearly 800,000 homes in 24 states and more than 40 major markets. Valued at $21.87 billion at market capitalization, the company also offers a variety of home designs, including single-family detached homes, townhomes, condos and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods and American West brands. The leading homebuilder is expected to report its fiscal second quarter 2024 financial results before the market opens on Tuesday, July 23.

Ahead of the event, analysts expect PHM to report earnings of $3.20 per share on a diluted basis, up 6.7% from $3 per share in the year-ago quarter. The company has consistently topped Wall Street earnings per share estimates in its last four quarterly reports. In the previous quarter, PHM repurchased $246 million of common stock, and its backlog at quarter-end was 13,430 homes valued at $8.2 billion.

For fiscal 2024, analysts expect PHM to post earnings per share of $12.64, up 7.9% from $11.72 in fiscal 2023.

PHM stock has outperformed the S&P 500 ($SPX) by 25.2% over the past 52-week period, with the stock gaining 34.8% during that time frame. It has similarly outperformed the S&P 500 Cons Disc Sector SPDR (XLY) by 10.1% over the same time frame.

On July 2, PHM shares closed down more than 1% after Raymond James and Citigroup downgraded Lennar Corporation (LEN). Citi downgraded LEN to Neutral from Buy, and Raymond James lowered its outlook on the company from “outperform” to “market perform,” citing concerns about the sluggish Florida housing market.

PHM shares closed down more than 3% on June 18 after LEN forecast new orders for Q3 at between 20,500 and 21,000, missing the consensus estimate of 21,095.

PHM shares closed up more than 4% on April 23 after the company reported first-quarter results. Its revenue of $3.95 billion topped consensus estimates of $3.60 billion. The company’s adjusted earnings per share were $2.87, topping Wall Street estimates of $2.36. PHM’s net new orders rose 14% year over year to 8,379 homes, and its net income was $663 million.

Analysts are unanimous in calling PHM stock bullish, with an overall rating of “Moderate Buy.” Of the 16 analysts covering the stock, 10 recommend a “Strong Buy” rating, one has a “Moderate Buy” rating, and five recommend a “Hold” rating. The average analyst price target for PHM is $130.62, indicating a 25.7% potential upside from current levels.

On the date of publication, Dipanjan Banchur did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.