PulteGroup Q3 Beats Estimates: Home Closings Up 12%, CEO Highlights Fed's Role in Addressing Affordability
Portfolio Pulse from Lekha Gupta
PulteGroup reported strong Q3 results with revenue and EPS beating estimates. Home closings increased by 12%, but shares fell 5.8% due to concerns over net new orders and gross margin decline. CEO highlighted the Fed's role in addressing home affordability.
October 22, 2024 | 3:16 pm
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NEGATIVE IMPACT
SMI 3Fourteen Full-Cycle Trend ETF, which includes PulteGroup, might experience short-term volatility due to PHM's share price drop.
The decline in PulteGroup's share price could lead to short-term volatility for the FCTE ETF, which holds PHM as part of its portfolio.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
The iShares U.S. Home Construction ETF, which includes PulteGroup, may be impacted by the decline in PHM shares despite strong Q3 results.
As PulteGroup is a component of the ITB ETF, the decline in PHM shares could negatively impact the ETF's performance in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
PulteGroup's Q3 results exceeded expectations with a 12% increase in home closings and EPS beating estimates. However, shares fell 5.8% due to concerns over a slight decline in gross margin and net new orders.
Despite strong earnings and revenue growth, the market reacted negatively to a decline in gross margin and net new orders, leading to a 5.8% drop in share price. The CEO's comments on the Fed's role in affordability did not offset these concerns.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100