PulteGroup Earnings: Here’s Why Investors are Selling Shares Now

PulteGroup, Inc. (NYSE:PHM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.47%.

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PulteGroup, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.21 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Rose 32% to $1.16 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PulteGroup, Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.15. It missed the average revenue estimate of $1.19 billion.

Quoting Management: “PulteGroup has gotten off to an extremely strong start in 2013, as the Company continues to realize significant improvement across key operating metrics including gross margin, overhead leverage, inventory turns and return on invested capital,” said Richard J. Dugas, Jr., PulteGroup Chairman, President and CEO. “These gains, which are consistent with the Company’s ongoing value creation work, helped drive our outstanding first quarter profitability and cash flows.”

Key Stats (on next page)…

Revenue decreased 25.78% from $1.57 billion in the previous quarter. EPS decreased 38.24% from $0.34 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.25 to a profit $0.27. For the current year, the average estimate has moved up from a profit of $1.15 to a profit of $1.22 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)