Core Insights - PulteGroup Inc. reported strong fourth-quarter 2024 results, with adjusted earnings and total revenues exceeding expectations and showing year-over-year growth [1][5] Financial Performance - Adjusted earnings per share (EPS) reached $3.50, surpassing the Zacks Consensus Estimate of $3.24 by 8%, and increased from $3.28 in the previous year [5] - Total revenues amounted to $4.92 billion, exceeding the consensus mark of $4.66 billion by 5.6% and reflecting a 14.7% increase from $4.29 billion a year ago [5] - For the full year 2024, total revenues were $17.95 billion, up from $16.06 billion in 2023, with home sales revenues increasing to $17.32 billion from $15.6 billion [10] Business Segments - Homebuilding segment revenues rose to $4.81 billion from $4.2 billion, driven by a 13% increase in home sale revenues to $4.71 billion [6] - Financial Services segment revenues increased by 22.6% year over year to $115.1 million, with pretax income rising 16% to $51 million [9] Operational Highlights - The number of homes closed increased by 6% to 8,103 units, with the average selling price (ASP) of homes delivered at $581,000, up 6% year over year [7] - Net new home orders slightly declined by 0.8% year over year to 6,167 units, but the value of new orders rose by 4% to $3.51 billion [7] - The backlog of homes yet to be closed was 10,153 units, down 16.4% year over year, with potential housing revenues from the backlog decreasing to $6.49 billion from $7.32 billion [7] Strategic Initiatives - The company invested approximately $5.3 billion into its business in 2024 and returned $1.4 billion to shareholders through stock repurchases and dividends [3] - To address ongoing affordability issues in the housing market, PulteGroup plans to continue operational changes to build sales backlog and inventory [4] Market Response - Following the earnings release, shares of PulteGroup gained 3.6% in pre-market trading [4]

Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; the impact of any changes to our strategy in responding to the cyclical nature of the industry or deteriorations in industry changes or downward changes in general economic or other business conditions, including any changes regarding our land positions and the levels of our land spend; economic changes nationally or in our local markets, including inflation, deflation, ...

Core Viewpoint - PulteGroup reported quarterly earnings of $3.50 per share, exceeding the Zacks Consensus Estimate of $3.24 per share, and showing an increase from $3.28 per share a year ago, indicating a strong performance in the homebuilding sector [1][2]. Financial Performance - The company achieved revenues of $4.92 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.57%, compared to $4.29 billion in the same quarter last year [2]. - Over the last four quarters, PulteGroup has consistently exceeded consensus EPS estimates, achieving this four times [2]. Stock Performance - PulteGroup shares have increased approximately 3.8% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.91 on revenues of $4.19 billion, and for the current fiscal year, it is $13.34 on revenues of $18.72 billion [7]. - The trend of estimate revisions for PulteGroup is mixed, which may change following the recent earnings report [6]. Industry Context - The Building Products - Home Builders industry is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - The performance of PulteGroup may be influenced by the overall outlook of the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8].

Financial Performance - PulteGroup reported net income of $913 million, or $4.43 per share, for Q4 2024, compared to $711 million, or $3.28 per share, in the prior year[2][3]. - Full year revenues reached nearly $18 billion, with net income of $3.1 billion and a return on equity of 27.5%[3]. - Net income for the year ended December 31, 2024, increased to $3,083,262, up 18.4% from $2,602,372 in 2023[25]. Home Sales and Orders - Home sale revenues in Q4 increased 13% to $4.7 billion, driven by a 6% increase in closings to 8,103 homes[5]. - The average selling price of homes closed in Q4 was $581,000, up 6% from $547,000 in the prior year[5]. - The company's net new orders for Q4 were 6,167 homes, valued at $3.5 billion, a 4% increase over last year[8]. - Home sale revenues for the year ended December 31, 2024, reached $17,318,521, a 10.9% increase from $15,598,707 in 2023[27]. - Total Homebuilding revenues for the year ended December 31, 2024, were $17,513,956, compared to $15,740,823 in 2023, reflecting a growth of 11.2%[27]. - The average selling price of homes increased to $555, up from $545 in 2023, indicating a 1.8% rise[29]. - Net new orders in dollars for the year ended December 31, 2024, totaled $16,493,524, a 8.2% increase from $15,244,353 in 2023[29]. Backlog and Inventory - The unit backlog stood at 10,153 homes, with a total value of $6.5 billion[6]. - The unit backlog decreased to 10,153 units as of December 31, 2024, down from 12,146 units in 2023[29]. Share Repurchase and Financial Management - PulteGroup repurchased $320 million of common shares in Q4, with a total of $1.2 billion repurchased in 2024, representing 4.7% of shares outstanding[11]. - The company announced a $1.5 billion increase to its share repurchase authorization, bringing the total remaining authorization to $2.1 billion[12]. Financial Services - Financial services operations generated pre-tax income of $51 million, a 16% increase from the prior year[9]. - Mortgage origination volume for the year ended December 31, 2024, was $19,770, an increase from $17,427 in 2023[31]. - The capture rate for mortgage originations improved to 85.9% in Q4 2024, compared to 81.6% in Q4 2023[31]. Cash and Debt Management - The company's cash and equivalents at the end of Q4 were $1.6 billion, with a debt-to-capital ratio of 11.8%[11]. - The debt-to-capital ratio improved to 11.8% in 2024, down from 15.9% in 2023, indicating reduced leverage[37]. - Cash provided by operating activities for the year ended December 31, 2024, was $1,680,794, down from $2,196,762 in 2023[25].

Core Viewpoint - PulteGroup (PHM) is expected to report quarterly earnings of $3.24 per share, reflecting a 1.2% decline year-over-year, while revenues are forecasted to increase by 8.6% to $4.66 billion [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 0.4%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Homebuilding - Home sale revenues' to reach $4.53 billion, marking an 8.9% increase from the previous year [5]. - The 'Revenues - Financial Services' are projected at $100.25 million, reflecting a 6.8% year-over-year increase [5]. - The consensus for 'Revenues - Homebuilding' stands at $4.56 billion, indicating an 8.6% increase from the prior year [5]. Key Metrics - 'Homebuilding - Land sale revenues' are expected to be $32.02 million, showing a 7.3% decline year-over-year [6]. - The 'Average Selling Price - Total' is projected at $559.52, up from $547 in the same quarter last year [6]. - 'Net New Orders in Units - Total' is expected to be 6,274, compared to 6,214 in the same quarter last year [7]. - 'Active Communities' are estimated at 950, up from 919 a year ago [7]. - 'Closings (units) - Total' are projected to reach 8,099, compared to 7,615 in the same quarter last year [7]. Backlog and Orders - 'Unit Backlog - Total' is expected to be 10,264, down from 12,146 year-over-year [8]. - 'Backlog Value - Total' is projected at $6.64 billion, compared to $7.32 billion last year [8]. - 'Net New Orders (Value) - Total' is forecasted to reach $3.60 billion, up from $3.36 billion year-over-year [8]. Financial Services - 'Income / (loss) before income taxes - Financial Services' is expected to be $52.82 million, compared to $43.85 million last year [9]. Stock Performance - Over the past month, PulteGroup shares have returned +5.7%, outperforming the Zacks S&P 500 composite's +1.7% change [10].

Core Viewpoint - PulteGroup Inc. is expected to report its fourth-quarter 2024 results on January 30, with positive earnings and revenue growth anticipated despite challenges in the housing market [1][2]. Revenue Expectations - The Zacks Consensus Estimate for PulteGroup's fourth-quarter EPS has risen to $3.21, reflecting a 2.1% decrease from the previous year's EPS of $3.28, while revenue is projected at $4.66 billion, indicating an 8.6% year-over-year growth [3]. - The company's revenue growth is attributed to a balanced operating model, mortgage rate buydown programs, and favorable home pricing, despite higher mortgage rates and affordability challenges [4]. Home Closings and Pricing - PulteGroup anticipates home closings to be between 7,900 and 8,300 units, an increase from 7,615 units a year ago, with a model prediction of 8,012 units, representing a 5.2% year-over-year growth [5]. - The average selling price (ASP) for homes is expected to be between $555,000 and $565,000, up from $547,000 a year ago, with a model prediction of a 2.3% increase to $559,500 [6]. Segment Performance - Homebuilding revenues, which contributed 98% to total revenues in 2023, are expected to rise by 7.5% year-over-year to $4.51 billion, driven by higher home closings and ASP [7]. - Financial services revenues, contributing 2% to total revenues in 2023, are projected to increase by 4.4% year-over-year to $98 million [7]. Margin Analysis - PulteGroup is likely to experience margin pressure due to the need for incentives to address affordability concerns, with homebuilding gross margins expected to be in the range of 27.5% to 27.8%, down from 28.7% in the previous year [8][9]. Orders and Backlogs - The company expects net new orders to increase by 6% year-over-year to 6,586 units, while total backlog is anticipated to decline by 12.2% to 10,663 units, with the total backlog value decreasing by 5.6% year-over-year to $6.91 billion [11]. Earnings Prediction - The model predicts an earnings beat for PulteGroup, supported by a positive Earnings ESP of +2.36% and a Zacks Rank of 3 (Hold) [12][13].

Company Overview - PulteGroup (PHM) is expected to report a year-over-year decline in earnings of 2.1%, with earnings projected at $3.21 per share, while revenues are anticipated to increase by 8.6% to $4.66 billion for the quarter ended December 2024 [3][12]. Earnings Expectations - The earnings report is scheduled for January 30, 2025, and could influence the stock price significantly depending on whether the actual results exceed or fall short of expectations [2][14]. - The consensus EPS estimate has been revised down by 0.43% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for PulteGroup is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.36%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. - Historical performance shows that PulteGroup has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +8.06% in the last reported quarter [12][13]. Industry Context - In the Zacks Building Products - Home Builders industry, Meritage Homes (MTH) is also expected to report earnings of $2.45 per share, reflecting a year-over-year decline of 8.9%, with revenues projected to decrease by 5.1% to $1.57 billion [17]. - Meritage Homes has seen a significant upward revision of 11.8% in its consensus EPS estimate over the last 30 days, resulting in an Earnings ESP of 5.97%, indicating a strong likelihood of beating the consensus EPS estimate [18].

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed decisions and improve their investment strategies through various rankings and scores [1][2]. Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum, serving as complementary indicators to the Zacks Rank [2][3]. - Each stock receives an alphabetic rating from A to F, with A indicating the highest potential for outperforming the market [3]. Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3]. Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [4]. Momentum Score - The Momentum Style Score assesses stocks based on recent price changes and earnings estimate trends, helping investors capitalize on upward or downward price movements [5]. VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors seeking stocks with attractive value, strong growth forecasts, and promising momentum [6]. Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios [7]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8]. Stock to Watch: PulteGroup - PulteGroup Inc. operates primarily in homebuilding and financial services, with 98% of its revenue coming from homebuilding as of 2023 [12]. - Currently rated 3 (Hold) with a VGM Score of A, PulteGroup has a Momentum Style Score of A and has seen a 4.6% increase in shares over the past four weeks [12][13]. - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate increasing by $0.01 to $13.43 per share, alongside an average earnings surprise of 10.9% [13].

Company Performance - PulteGroup (PHM) closed at $115.81, reflecting a -1.04% change compared to the previous day, underperforming the S&P 500's 0.88% gain [1] - Over the past month, PulteGroup's shares have increased by 6.27%, while the Construction sector and S&P 500 gained 3.13% and 1.17% respectively [1] Upcoming Earnings - PulteGroup is expected to release its earnings on January 30, 2025, with analysts projecting earnings of $3.21 per share, indicating a year-over-year decline of 2.13% [2] - The Zacks Consensus Estimate for revenue is $4.66 billion, representing an 8.58% increase from the previous year [2] Analyst Forecasts - Recent revisions to analyst forecasts for PulteGroup are crucial as they reflect short-term business trends and analysts' confidence in the company's performance [3] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates PulteGroup at 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate for PulteGroup has increased by 0.2% [5] Valuation Metrics - PulteGroup has a Forward P/E ratio of 8.74, which is higher than the industry average Forward P/E of 8.29 [6] - The company has a PEG ratio of 0.46, compared to the industry average PEG ratio of 0.83 [7] Industry Context - The Building Products - Home Builders industry, which includes PulteGroup, has a Zacks Industry Rank of 216, placing it in the bottom 14% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? PulteGroup (PHM) , which belongs to the Zacks Building Products - Home Builders industry, could be a great candidate to consider.This homebuilder has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 9.80%.For the most recent quarter, PulteGroup was ...