Will PulteGroup (PHM) Generate Better Earnings In 2020?
Zacks Investment Research | Jan 15, 2020 09:01PM ET
Post lackluster housing market backdrop in the second half of 2018, PulteGroup Inc. (NYSE:PHM) has been posting tepid earnings results. Although the company’s earnings in the trailing three quarter outpaced analysts’ expectation, the same either remained flat or declined on a year-over-year basis. The downside was primarily caused due to higher land, labor and material costs as well as lower market demand.
Earnings estimates for 2019, the results of which is slated to be released on Jan 28, 2020, is likely to decline 1.1% year over year to $3.55 per share. In fact, PulteGroup’s fourth-quarter 2019 earnings are expected to fall 2.7% to $1.08 per share from the year-ago quarter’s figure of $1.11.
Nevertheless, the U.S. housing industry has picked up pace and is reaching record levels on the back of strong economic fundamentals — lower rates, moderate material costs, growing demand for entry-level homes and fall in unemployment level. Despite being hurt by insufficient inventory, the industry is well poised to meet housing demand in 2020. Moreover, lesser trade frictions have also added to the positives.
Backed by the industry tailwinds, prudent land acquisition strategies and focus on entry-level buyers, PulteGroup is expected to do well in 2020. Notably, the Zacks Consensus Estimate for earnings for 2020 are currently pegged at $3.88 per share that suggests a rise of 9.4% year over year. Also, revenues are anticipated to rise 7.8% from the year-ago figure.
Shares of this Zacks Rank #3 (Hold) company have gained 8.4% in the past three months compared with the Zacks Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.