The homebuilder reported earnings of 57 cents a share, while analysts surveyed by Thomson Reuters estimated earnings of just 44 cents a share. PulteGroup reported revenue of $1.66 million for the quarter, compared to analyst estimates of $1.68 million.
The company saw a 9% increase of home sale revenue for the quarter thanks to raised selling prices. PulteGroup has slowed its pace of building houses, relying on the higher prices of fewer houses on the market to drive revenue.
Following the earnings report analyst firm Raymond James upgraded the company to "outperform" from "market perform," setting a price target of $23.
TheStreet Ratings team rates PULTEGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PULTEGROUP INC (PHM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: