PulteGroup (NYSE:PHM) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

PulteGroup, Inc. (NYSE:PHM) is scheduled to report Q3 earnings results before markets open for trading on October 22, 2020.

The company is expected to report earnings of $1.14/share on revenue of $2.779 billion. The consensus earnings per share (EPS) of $1.14/share is based on a poll of 13 analysts and represents a growth in eps of 13.0% over the same quarter last year, when the company reported earnings of $1.01/share.

The revenue forecast of $2.779 billion based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 2.5%. Last year the company reported $2.71 billion in revenue for the quarter.

Expected to report EPS growth of 13.0% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,778.61 $2,710.36 2.5%
EPS $1.14 $1.01 13.0%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from PulteGroup, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.87 $1.15 31.7% Beat
Q1, 2020 $0.70 $0.81 14.7% Beat
Q4, 2019 $1.10 $1.14 3.6% Beat
Q3, 2019 $0.92 $1.01 9.8% Beat
Q2, 2019 $0.82 $0.86 4.9% Beat
Q1, 2019 $0.47 $0.59 25.2% Beat
Q4, 2018 $1.10 $1.11 1.1% Beat
Q3, 2018 $0.94 $1.01 7.2% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 8.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $39.44 $42.62 8.1% Increase
April 23, 2020 $24.07 $25.64 6.5% Increase
January 28, 2020 $44.30 $46.01 3.9% Increase
October 22, 2019 $38.19 $39.83 4.3% Increase

Fundamentals And Technical Analysis

PulteGroup, Inc. is currently trading at $46.42/share, down −2.8% for the day. The company is trading at approximately 93.4% of its 52-week high of $49.70/share. The company’s stock price is up 8.9% since the last earnings report and down −4.0% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 48.85 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:PHM Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.82 and a forward P/E multiple of 11.14.

PulteGroup, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.13. The following table summarizes some other key fundamental ratios:

Data as of October 20, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $46.42
P/E Ratio 10.8x
P/E Ratio (Fwd) 11.1x
PEG Ratio 0.4
Total Debt / Total Capital 19.4%
Levered Free Cash Flow $1.514 billion
EV / EBITDA 8.5x

Finbox

PulteGroup, Inc. is a large-cap stock with a market capitalization of $12.449 billion and a total enterprise value of $13.899 billion. The company operates in the Consumer Discretionary sector and the Household Durables industry.

PulteGroup, Inc., through its subsidiaries, primarily engages in the homebuilding business in the United States. The company acquires and develops land primarily for residential purposes; and constructs housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes, and John Wieland Homes and Neighborhoods brand names. As of December 31, 2019, the company controlled 158,262 lots and 64,903 lots under land option agreements. It also arranges financing through the origination of mortgage loans primarily for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. The company was formerly known as Pulte Homes, Inc. and changed its name to PulteGroup, Inc. in March 2010. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

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