Boston, MA 10/29/2013 (wallstreetpr) – For the quarter ended September 30, one of the nation’s largest builders PulteGroup, Inc. (NYSE:PHM) announced their financial results through a conference call. The company’s revenue was boosted by closings and increased selling prices.
On down side, the company saw reduced new orders down by 17% compared to the same period the previous year. Among the aspects that were blamed for the slowdown in new acquisitions are the high mortgage rates and the increased home buying cost. However the rate of closings increased to 9%.
The overall profit of the company was $2.28 billion or $5.87 per share. In the same period a year ago the company made $116.6 million which translated to $0.30 cents per share. The company also made a gain of $5.42 a share from the reversal of the company’s deferred tax asset valuation allowance. The company’s adjusted earnings rose to $0.45 per share.
The company had total revenue of $1.58 billion which translates to a 21% increase. Thomson Reuters expected the company to make revenue of 0.36 cents per share to bring it to a value of $1.46 billion.
The cost of home building revenue went up by 18% while the home sale gross margins increased to 22.5% from 21.6% the same period a year ago. The average selling price jumped 11% to $310K.
However the posted results did not seem to have an impact on the company’s share price at the stocks exchange. In the last three months, the company’s shares have slipped 9.6%. The company’s management attributed the success to the initiatives that were targeted at driving higher returns on invested capital through increased margins and better overhead leverage and accelerated inventory turns. The management also reiterated that the not only did the success show their progress through the numbers but also demonstrated the progress they continued to make operating against the value creation strategy.
