PulteGroup Q1 Results Exceed Expectations, Announces $1B Increase To Buyback Program

PulteGroup Inc PHM reported first-quarter FY23 total revenue growth of 13.5% year-over-year to $3.56 billion, beating the consensus of $3.27 billion.
EPS improved to $2.35 from $1.83 in 1Q22, beating the consensus of $1.81.
Reported Home sale revenues grew 15% Y/Y to $3.5 billion, and Financial Services revenue was $57.94 million (-31.4% Y/Y). The increase in Home sales revenues reflects a 9% increase in average sales price to $545,000, combined with a 6% increase in closings to 6,394 homes.
Home sale gross margin was 29.1% for the quarter, compared with 29.3% in 1Q22. The operating margin was 19.5%, up 100 bps.
Gross orders totaled 8,898 homes (+1% Y/Y). Net new orders for the quarter decreased 8% Y/Y to 7,354 homes. The cancelation rate in Q1 was 13%, up from 4% in 1Q22. The dollar value of net new orders decreased 20% Y/Y to $3.8 billion.
PulteGroup quarter-end backlog was 13,129 homes valued at $8 billion. The average sales price in backlog was $608,000 (+5% Y/Y).
PulteGroup generated cash from operating activities for the quarter of $711.39 million, compared to $207.67 million a year ago.
Buyback: PulteGroup Board approved a $1 billion increase to its share repurchase authorization. This increase brings the total share repurchase authorization to $1.2 billion.
Price Action: PHM shares are trading higher by 1.53% at $64.84 on the last check Tuesday.

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