PulteGroup Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PulteGroup, Inc. (NYSE:PHM) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. PulteGroup is a publicly held holding company involved in the homebuilding and financial services businesses.

PulteGroup, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 31 cents per share, a rise of more than twofold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 29 cents. Between one and three months ago, the average estimate moved up. It has risen from 30 cents during the last month. Analysts are projecting net income of 70 cents per share versus a loss of one cent last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 27 cents per share against a mean estimate of net income of 20 cents, and the quarter before, the company exceeded forecasts by 8 cents with profit of 13 cents versus a mean estimate of net income of 5 cents.

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A Look Back: In the third quarter, the company swung to a profit of $116.6 million (30 cents a share) from a loss of $129.3 million (34 cents) a year earlier, beating analyst estimates. Revenue rose 14.1% to $1.3 billion from $1.14 billion.

Here’s how PulteGroup traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

phm

Stock Price Performance: Between November 27, 2012 and January 25, 2013, the stock price had risen $4.54 (26.5%), from $17.11 to $21.65. The stock price saw one of its best stretches over the last year between November 14, 2012 and November 27, 2012, when shares rose for nine straight days, increasing 12.3% (+$1.88) over that span. It saw one of its worst periods between March 28, 2012 and April 10, 2012 when shares fell for nine straight days, dropping 18.9% (-$1.79) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 19% in revenue from the year-earlier quarter to $1.5 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.5% in the fourth quarter of the last fiscal year, 9.4% in the first quarter and 15.3% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With eight analysts rating the stock a buy, one rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.19 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.16 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 2.7% to $6.11 billion while liabilities rose by 1.7% to $1.92 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)