Homebuilder PulteGroup Inc. (PHM) posted a first-quarter loss of $40 million, or 10 cents per share, on Thursday even as traffic and orders rose during the quarter on a month-to-month basis. That compares to a net loss of $12 million, or 3 cents per share, a year earlier. Despite deepening its loss from last year, the company beat analyst estimates of a loss in the 13 cents-per-share range, which prompted a rise in the company’s stock price early Thursday morning. The firm’s profit fell as revenue from home sales plummeted 20% to $782 million, compared to $977 million a year earlier when the homebuyer tax credit was still buoying sales figures in the market. Total closings for 1Q fell 17% over last year, with the homebuilder closing on 3,141 homes during the period. “We are encouraged by traffic and orders within the quarter, which showed sequential increases from month-to-month, while we exceeded internal forecasts for the period on key business,” said PulteGroup President and CEO Richard J. Dugas Jr. “An improving economy is slowly beginning to generate new jobs, which over the long term should translate into stronger consumer confidence, both of which are critical to a meaningful and sustained recovery in the U.S. housing industry.” Dugas believes higher closing volumes are possible as the economy improves, prompting him to forecast the chance of profitability in the latter part of 2011. Write to Kerri Panchuk.
1Q loss widens for PulteGroup but homebuilder beats estimates
Most Popular Articles
Latest Articles
Labor market report is good news for mortgage rates
Friday’s jobs report came in as a miss of estimates and wage growth came in lower than expected, which is good news for mortgage rates.
-
Virginia Realtors: Zillow’s touring agreement may not be legal
-
Low inventory creates challenging conditions in North Carolina’s housing market
-
Tri-state area housing shortage could cost the region economically
-
Remote reverse mortgage counseling now permanently permitted in Massachusetts
-
NAR settlement terms slated to go into effect in mid-August