Will PulteGroup (PHM) Post Strong Q2 Results on Thursday?

PulteGroup (PHM) is scheduled to report its 2016 second quarter results before Thursday’s opening bell.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of PulteGroup (PHM) - Get Report closed lower by 0.46% to $20.37 on Tuesday ahead of the company's 2016 second quarter earnings due out before Thursday's market open.

Analysts are modeling an increase in earnings per share and revenue year-over-year.

Wall Street is expecting the Atlanta-based homebuilder to report earnings of 32 cents per share on revenue of $1.66 billion.

Last year, PulteGroup earned 28 cents per share on revenue of $1.28 billion.

MKM Partners maintained its "neutral" rating and $21 price target on the stock ahead of the earnings release.

"From a fundamental perspective, we expect margins to be in sharp focus after PHM provided incremental detail last quarter on margin headwinds due to mix," the firm wrote in a recent note.

"PHM's order growth has recently improved - if it can continue that trend without meaningul margin erosion, we believe the shares would benefit," MKM added.

But the firm continues to remain cautious on the company due to its internal issues of CEO succession.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, attractive valuation levels and increase in net income.

The team believes its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: PHM

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