ATLANTA - PulteGroup, Inc. (NYSE: NYSE:PHM) delivered a strong performance in the second quarter of 2024, surpassing analyst estimates with earnings of $3.83 per share, a notable $0.56 above the consensus of $3.27.
The company's revenue also exceeded expectations, coming in at $4.6 billion against the predicted $4.49 billion. This robust quarter, highlighted by a 10% increase in home sale revenues to $4.4 billion, sent the company's shares up by 3.27%.
President and CEO Ryan Marshall attributed the impressive results to a combination of higher closings, up 8% to 8,097 homes, and a 2% rise in average sales price to $549,000.
The company's home sale gross margin saw a 30 basis point improvement to 29.9%, contributing to the earnings spike. PulteGroup's financial services also performed exceptionally, with a 36% jump in pre-tax income driven by gains across mortgage, title, and insurance services.
Marshall emphasized the company's focus on managing sales price, pace, and starts to achieve high returns on invested capital and equity over time.
Compared to the same period last year, the company's net new orders slightly decreased in unit count from 7,947 to 7,649 homes but increased in value by 2% to $4.4 billion. The company's backlog remains strong with 12,982 homes valued at $8.1 billion.
PulteGroup's strategic capital allocation was evident as it repurchased $314 million of common shares and $300 million of senior notes during the quarter, ending with $1.4 billion in cash and a debt-to-capital ratio of 12.8%. The company's effective tax rate for the quarter was 22.8%, inclusive of a $13 million benefit from the favorable resolution of state tax matters.
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