Overview

* PulteGroup ( PHM ) Q3 home sale rev decreases 2% yr/yr to $4.2 bln

* Net income for Q3 falls to $586 mln from $698 mln last year

* Company repurchased 2.4 mln common shares for $300 mln in the quarter

Outlook

* Company monitoring buyer demand affected by consumer confidence and affordability challenges

Result Drivers

* HOME SALE REVENUE DECLINE - Co attributes 2% decrease in home sale revenues to a 5% drop in closings, partially offset by a 3% increase in average sales price

* NET NEW ORDERS DECLINE - Co reports a 6% decrease in net new orders due to weaker consumer confidence and ongoing affordability challenges

* FINANCIAL SERVICES INCOME DROP - Lower closing volumes and decreased mortgage capture rate led to reduced pre-tax income in financial services

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Home $4.24

Sale bln

Revenues

Q3 EPS $2.96

Q3 Home 26.20%

Sale

Gross

Margin

Q3 $3.60

Orders bln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 6 "hold" and 1 "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 ( PHM ) is $140.00, about 12% above its October 20 closing price of $123.27

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)