PulteGroup Inc. Earnings: The Streak is Broken

S&P 500 (NYSE:SPY) component PulteGroup Inc. (NYSE:PHM) reported its results for the fourth quarter. PulteGroup is a publicly held holding company involved in the homebuilding and financial services businesses.

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PulteGroup Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $13.8 million (4 cents per diluted share) in the quarter. The residential construction company had a net loss of $165.4 million or a loss of 44 cents per share in the year earlier quarter.

Revenue: Rose 6.5% to $1.26 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PulteGroup Inc. fell short of the mean analyst estimate of 8 cents per share. It beat the average revenue estimate of $1.14 billion.

Quoting Management: “We are pleased to report PulteGroup’s fourth quarter earnings, which demonstrate the Company’s continued progress on our initiatives to expand margins and lower overhead costs,” said Richard J. Dugas, Jr., Chairman, President and CEO of PulteGroup. “In addition to our improved operating results, we also successfully sold 23 non-strategic land assets for $64 million and were able to repurchase $257 million par value of our debt for $252 million. These transactions continue to strengthen our balance sheet and will help to improve our return on invested capital over time. The 2011 U.S. housing market demonstrated continued stability, although at extremely low levels of new home sales. Favorable long-term demographic drivers and improvements in a number of underlying housing data reports provide reasons for optimism heading into 2012. Although challenging macroeconomic conditions persist, we believe the progress we have made across our core homebuilding operations should enable the Company to be profitable for the full year of 2012.”

Key Stats:

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $129.3 million in the third quarter, a loss of $55.4 million in the second quarter and a loss of $39.5 million in the first.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 11 cents versus a mean estimate of 0 cents per share.

The company’s revenue has now risen for two straight quarters. In the third quarter, revenue increased 8% to $1.14 billion from the year earlier quarter.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 3 cents. Down from a loss of 42 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 52 cents.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com