PulteGroup Profit Grows on Higher Closings, Orders -- Update
January 28 2016 - 9:28AM
Dow Jones News
By Joshua Jamerson
Home builder PulteGroup Inc. posted better-than-expected
earnings and revenue growth in the fourth quarter as orders and
closings climbed.
Shares, down 9.8% in the past 12 months as of Wednesday's close,
climbed 7.6% to $17.30 in premarket trading.
Builders have been confident in recent quarters that home buyers
will return to the housing market, drawn by an improved job market,
higher rental costs and low interest rates.
Chairman and Chief Executive Richard J. Dugas Jr. said Thursday
that while global economic concerns have created greater market
volatility, the company's results reflect "the favorable demand
environment we continue to experience within the housing
industry."
For the three months ended Dec. 31, PulteGroup reported that net
new home orders climbed 13% as closings increased 7% from a year
earlier. Its backlog grew 15% to 6,731 homes, and the backlog's
value rose 26% to $2.5 billion--its highest year-end value since
2007.
Home sales revenue grew 12% as average selling price increased
across each of its three national brands.
Mr. Dugas also said the results would provide momentum for
strong earnings growth in 2016.
For the quarter, PulteGroup reported profit of $228 million, or
64 cents a share, up from $217 million, or 58 cents a share, in the
year-earlier period.
Revenue grew 13% to $2.06 billion. Analysts polled by Thomson
Reuters expected earnings of 49 cents a share on revenue of $1.86
billion.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
January 28, 2016 09:13 ET (14:13 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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