PulteGroup Returns To Profitability

BLOOMFIELD HILLS, Mich. (TheStreet) -- PulteGroup(PHM) posted a quarterly profit for the first time in 14 quarters, the homebuilder said Wednesday, buoyed by its 2009 merger with Centex and federal tax credits for American homebuyers.

PulteGroup earned $76.3 million, or 20 cents per share, compared with year-earlier losses of $189.5 million, or 74 cents per share. Results easily topped Wall Street's expectations.

"For the industry to experience meaningful and sustained rebound we need a stronger economy, job creation and better consumer confidence," Chief Executive Richard Dugas cautioned analysts on a conference call. "Right now the industry's biggest issue is a lack of buyers."

PulteGroup shares were up throughout much of Wednesday's session, but the rally proved unsustainable after Dugas' cautionary remarks and a forecast from Credit Suisse analyst Dan Oppenheim for a 13% decline in PulteGroup's orders in the third quarter. Shares slipped in the final hours of trading, closing down 0.6% to $8.38.

The iShares Dow Jones US Home Construction(ITB), an exchange-traded fund that tracks the homebuilding sector and counts PulteGroup and rival D.R. Horton(DHI) shares among its top three holdings, was lower by 0.3%. The ITB's top holding, NVR(NVR), edged down 0.1%.