PulteGroup, Inc. ( PHM ) shares are trading higher after the company reported first-quarter FY24 results.

Revenue stood at $3.95 billion, beating the consensus of $3.58 billion.

Reported home sale revenues rose 10% Y/Y to $3.8 billion, with higher revenues reflecting an 11% increase in closings to 7,095 homes, partly offset by a 1% Y/Y drop in average sales price to $538,000.

The gross margin for home sales stood at 29.6%, increasing by 50 basis points Y/Y, benefiting from ongoing strength in homebuyer demand and a favorable geographic mix of homes.

Net new orders increased 14% Y/Y to 8,379 homes. The cancellation rate dropped to 10% of the backlog at the start of the period, a decrease from 13% in the first quarter of the previous year.

GAAP EPS rose 32% Y/Y to $3.10. Adjusted EPS of $2.87 beat the consensus of $2.36.

PulteGroup’s quarter-end backlog was 13,430 homes, valued at $8.2 billion. The company ended the year with $1.8 billion of cash and a debt-to-capital ratio of 15.4%. 

During the quarter, the company repurchased 2.3 million of its common shares for $246 million, or an average price of $106.73 per share.

“Given PulteGroup’s broad operating platform and deep product portfolio, along with the powerful incentive programs we can offer to help improve the overall affordability equation, we are well positioned to expand our market share while helping to provide much needed new housing stock.” said Ryan Marshall, PulteGroup ( PHM ) President and CEO.

Investors can gain exposure to the stock via IShares U.S. Home Construction ETF and Invesco Building & Construction ETF .

Price Action: PHM shares were up 3.9% at $112.14 at last check Tuesday.