PulteGroup results beat estimates on higher new home sales – Reuters

Houses are seen in Livingston Square by Pulte Homes, a construction of the PulteGroup, in Livingston, New Jersey, U.S., May 23, 2022. REUTERS/Andrew Kelly/File Photo Acquire Licensing Rights
July 25 (Reuters) – PulteGroup Inc (PHM.N) beat Wall Street estimates for second-quarter profit and revenue on Tuesday, as strong demand for affordable housing and tight resale inventory boosted new home sales.
Existing home-owners locked into a lower mortgage rates have been unwilling to re-sell their houses in a high interest rate environment, driving consumers to purchase new homes.
High demand and tight supply compared with pre-pandemic levels have led U.S. homebuilders' stocks rally, with the S&P Composite 1500 Homebuilding Sub Index up more than 50% so far this year.
In another tailwind for homebuilders, a shortage of labour and building supplies has also begun to ease, cutting construction time.
"While there remains an extremely limited supply of existing homes, we have an expanded community count and a much improved supply chain that has PulteGroup well positioned to meet buyer demand going forward," CEO Ryan Marshall said.
As buyers adjust to a high mortgage rate environment, the company has also begun to raise prices, boosting its quarter-on-quarter profit margins.
Homes closed in the quarter ended June rose 5% to 7,518 units with the average selling price rising 3% to $540,000 per house from last year.
PulteGroup reported a net profit of $3.21 per share, beating analysts' estimates of $2.51 per share, according to Refinitiv data.
Home sales revenue of $4.18 billion was 8% higher than last year and also topped analysts' estimates of $3.99 billion.
Shares of the Atlanta-based homebuilder rose 1.22% in premarket trading.
Reporting by Ananta Agarwal in Bengaluru Editing by Vinay Dwivedi
Our Standards: The Thomson Reuters Trust Principles.
Pfizer CEO Albert Bourla said on Monday that he expects about 17% of the U.S. population to get updated COVID-19 vaccines during the current vaccination campaign, in-line with last year.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved

source


Posted

in

by

Tags:

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *