Shares of home-construction company PulteGroup (PHM - Get Report) reversed course on Tuesday, falling more than 6% after the company reported second-quarter earnings that surpassed analysts' estimates but warned its third-quarter home sales will be softer than expected.
Shares of the Atlanta-based company were down 6.9%, or $2.31, at $31.17 in mid-morning trading on the New York Stock Exchange after it reported net income of $241 million, or 86 cents share, vs. $324 million, or $1.12 a share, in the year-earlier period.
Analysts surveyed by FactSet had been expecting per-share earnings of 82 cents. Home sale revenue came in at $2.4 billion down 2% from the prior year and below the $2.5 billion consensus estimate of analysts surveyed by FactSet.
In a conference call with analysts, CEO Ryan Marshall indicated that despite still-strong activity on the back of low interest rates and supportive economic activity the company's third-quarter sales will likely come in softer than currently expected.
Marshall said PulteGroup now expects full-year home sales to come in between 22,300 and 22,800 homes this year, below analysts' forecasts of 22,764 home sales.
The average sales price of homes in backlog in the second quarter was $433,000, down 1% from last year's average sales price in backlog of $439,000. The total value of homes in backlog was $5.1 billion, the company said.