PulteGroup Stock Soars After Q2 Earnings: The Details

PulteGroup Inc PHM shares are trading higher after the company reported second-quarter FY23 earnings. It clocked a total revenue growth of 8% year-over-year to $4.19 billion, beating the consensus of $3.99 billion. EPS of $3.00 beat the consensus of $2.51.

Reported Home sale revenues grew 7.9% Y/Y to $4.06 billion, and Financial Services revenue was $92.2 million (+11.4% Y/Y). The increase in Home sales revenues reflects a 3% increase in average sales price to $540,000, combined with a 5% increase in closings to 7,518 homes.

Home sale gross margin was 29.6% for the quarter, down by 170 basis points from the prior year. 

Net new orders for the quarter increased by 24% Y/Y to 7,947 homes. The dollar value of net new orders grew by 9% Y/Y to $4.3 billion.

PulteGroup quarter-end backlog was 13,558 homes valued at $8.2 billion.

CEO Ryan Marshall said, "By remaining disciplined and balanced in executing our business plan, we were able to realize higher closings and prices in the period, along with driving exceptional margins of 29.6% and a return on equity* of 32%." 

Price Action: PHM shares are trading higher by 5.95% at $83.20 on the last check Tuesday.