PulteGroup Q1 EPS Misses by $0.03 as Home Sale Margin Slips to 24.4%
PulteGroup reported Q1 EPS of $1.79, missing the $1.82 estimate, and revenue of $3.30 billion compared to a $3.39 billion consensus, down 12% year-over-year. Home sale gross margin fell to 24.4% from 27.5% while net new orders rose 3% to 8,034 homes valued at $4.6 billion and share repurchase authorization increased by $1.5 billion.
1. Q1 Financial Results
PulteGroup reported Q1 net income of $347 million, or $1.79 per share, falling short of the $1.82 consensus. Revenue totaled $3.30 billion, down 12% year-over-year and below the $3.39 billion estimate.
2. Homebuilding Operations and Margins
The company closed 6,102 homes, a 7% decline, at an average selling price of $542,000, down 5%. Home sale gross margin contracted to 24.4% from 27.5% and SG&A expenses rose to 11.5% of revenue from 10.5%.
3. Orders and Capital Allocation
Net new orders climbed 3% to 8,034 homes valued at $4.6 billion, while backlog stood at 10,427 homes worth $6.5 billion. PulteGroup invested $1.3 billion in land, ended with $1.8 billion cash, a 12.3% debt-to-capital ratio, and increased repurchase authorization by $1.5 billion.