PulteGroup Reports Q4 2024 Results: Stock Performance Mixed

PulteGroup, Inc. exceeds Wall Street estimates in Q4 2024 results. Although its stock has seen a 29.5% decline from 52-week highs, analysts maintain a 'Moderate Buy' rating, creating both concern and optimism within the market.

Date: 22-03-2025

AI Rating: 7

PulteGroup, Inc. (PHM) reported its fourth-quarter results for 2024, posting total revenue of $4.9 billion and an adjusted Earnings Per Share (EPS) of $3.50. This performance reflects a positive trend with a year-over-year growth of 13% in home sale revenue, which signifies robust performance within its core business despite broader market challenges.

Moreover, the company's sale gross margin stands at 27.5%, which is relatively strong and points to effective cost management in its operations. However, PulteGroup has faced some headwinds in its stock performance, evidenced by a 29.5% decline from its 52-week high and a 7.6% decrease over the past 52 weeks. In comparison, its main competitor, Lennar Corporation (LEN), has experienced a steeper decline, providing some relative comfort to PulteGroup's investors.

While PHM's stock is below its 50-day and 200-day moving averages, which typically suggests bearish trends, the analysts' consensus remains a cautious 'Moderate Buy,' indicating a belief in potential recovery. The current trading price is below the mean price target of $135.03, exhibiting an opportunity for future price appreciation, assuming broader market conditions stabilize.

Investor sentiment might be varied due to the contrasting performance metrics and PulteGroup's positioning compared to peers in the homebuilding sector. The return on equity (ROE) and net income were not explicitly detailed, which could further influence investor evaluations and decisions going forward.

Stocks: PHM LEN