Overview

• U.S. homebuilder's Q2 home sale revenue fell 11% yr/yr on lower closings and prices

• Q2 EPS dropped to $2.48 from $3.03 a year ago

• Company repurchased $373 mln of common shares in Q2

Outlook

• Company says market conditions remain highly competitive with uncertainty and strained affordability

• PulteGroup notes early signs of stabilization in select geographies

• Company continues tactical adjustments to balance price and pace within communities

Result Drivers

• LOWER CLOSINGS AND PRICES - Q2 home sale revenues declined due to an 8% drop in closing volumes and a 3% decrease in average sales price

• ORDER GROWTH - Net new orders rose 6% yr/yr, driven by higher community count and increased orders across all buyer groups

Company press release: ID:nBw5M6GgSa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Home Sale Revenues		$3.81 bln
Q2 EPS		$2.48
Q2 Home Sale Gross Margin		25.00%
Q2 Orders		$4.1 bln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy"

• Wall Street's median 12-month price target for Pultegroup Inc is $145.00, about 16.7% above its July 21 closing price of $124.26

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 21 - D.R. Horton cuts annual revenue forecast as high costs dent margins

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• July 21 - Forestar Q3 revenue misses amid cautious consumer sentiment

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