- PulteGroup Inc PHM reported second-quarter FY22 total revenue growth of 16.9% year-over-year to $3.93 billion, missing the consensus of $4.07 billion.
- Adjusted EPS improved to $2.73 from $1.72 in 2Q21, beating the consensus of $2.63.
- Home sale revenues $3.8 billion (+18%) and Financial Services revenue $82.77 million (-9.1% Y/Y).
- Home sales revenues were driven by a 19% increase in average sales price to $531,000, partially offset by a less than 1% decrease in closings to 7,177 homes.
- Homebuilding gross margin expanded 430 bps to 30.9%. The adjusted operating margin was 21.7% for Q2, compared to 16.7% in 2Q21.
- Net new orders decreased 23% Y/Y to 6,418 homes, as higher mortgage rates, reduced affordability, and lower consumer confidence slowed demand.
- The value of net new orders decreased 8% Y/Y to $3.9 billion. PulteGroup's unit backlog at quarter end was 19,176 homes (-4% Y/Y). The dollar value of homes in backlog was $11.6 billion (+18% Y/Y).
- The company ended the quarter with $732 million of cash and a debt-to-capital ratio of 20.8%.
- Through the first half of 2022, PHM paid out $74 million in dividends and returned $794 million to shareholders by repurchasing 17.4 million shares.
- PulteGroup generated cash from operating activities year-to-date of $102.34 million, compared to $432.07 million a year ago.
- "The recent 200-basis point increase in mortgage rates has impacted affordability, but we continue to believe the desire for homeownership is high and the long-term outlook for housing remains positive," commented CEO Ryan Marshall.
- Price Action: PHM shares are trading lower by 3.11% at $43.32 on the last check Tuesday.
- Photo Via Company
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