PulteGroup Anticipates Earnings Decline as Analysts Remain Optimistic

Atlanta-based PulteGroup, Inc. (PHM) is engaged in acquiring and developing land to build residential properties. The company provides various home designs, such as single-family detached homes, townhomes, condominiums, and duplexes. With a market capitalization of $20.5 billion, PulteGroup operates in two primary sectors: Homebuilding and Financial Services.

Upcoming Earnings Report

PHM is set to announce its first-quarter results before the markets open on Tuesday, April 22. Analysts predict that the company will report adjusted earnings of $2.48 per share, a decline of 13.6% compared to the $2.87 per share reported in the same quarter last year. Notably, PulteGroup has consistently surpassed analysts’ earnings estimates in each of the last four quarters.

Full-Year Earnings Forecast

For the full fiscal year 2025, PulteGroup is projected to report adjusted earnings of $12.32 per share, representing a 7.2% decrease from the $13.28 per share earned in fiscal 2024. However, fiscal 2026 is expected to bring a recovery, with earnings predicted to rise by 9.8% to $13.53 per share.

Stock Performance Overview

PulteGroup’s stock has declined by 11.1% over the past 52 weeks, significantly lagging behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 2.8% gains and the S&P 500 Index’s ($SPX) 1.4% decline in the same period.

Recent Performance Highlights

Following a positive surge of 4.9% after revealing robust Q4 results on January 30, PulteGroup showed substantial growth. The company’s home sales revenues rose by 13% year-over-year, totaling $4.7 billion, aided by a significant increase in land sales and other revenues. Overall revenues reached $4.9 billion, a 14.6% growth compared to the previous year, exceeding analysts’ expectations. Additionally, net income jumped 28.4% year-over-year to $913.2 million. However, after this initial climb, PHM stock fell nearly 4% in the next two trading sessions.

Analyst Ratings and Price Target

Currently, the consensus opinion on PHM stock is moderately bullish, earning an overall “Moderate Buy” rating. Out of 16 analysts monitoring the stock, nine currently advocate a “Strong Buy,” one suggests a “Moderate Buy,” and six recommend a “Hold” rating. The average price target stands at $133.83, which indicates a potential upside of 32.2% from current price levels.

On the date of publication, Aditya Sarawgi had no positions in any of the securities mentioned in this article. All data and information in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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