PulteGroup Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PulteGroup, Inc. (NYSE:PHM) will unveil its latest earnings on Thursday, October 25, 2012. 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 estimate of analysts is for profit of 20 cents per share, a rise of 81.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 13 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 20 cents during the last month. Analysts are projecting net income of 52 cents per share versus a loss of one cent last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported profit of 13 cents per share versus a mean estimate of 5 cents. Two quarters ago, it reported net loss of 3 cents per share.

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A Look Back: In the second quarter, the company swung to a profit of $42.4 million (11 cents a share) from a loss of $55.4 million (15 cents) a year earlier, beating analyst estimates. Revenue rose 15.3% to $1.07 billion from $927.2 million.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $6.03 (50.8%), from $11.86 to $17.89. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 11, 2012, when shares rose for eight straight days, increasing 22% (+$1.39) 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 23.7% in revenue from the year-earlier quarter to $1.41 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 8% in the third quarter of the last fiscal year, 6.5% in the fourth quarter of the last fiscal year and 9.4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With six analysts rating the stock as a buy, one rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.16 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 regressed in this liquidity measure from 3.2 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 2.4% to $1.88 billion while assets rose 1.1% to $5.95 billion.

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

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