PulteGroup, Inc. (NYSE: PHM) is often thought of by many as the bogey of the US Homebuilding sector. If so, the company is giving a forecast that might mean profits in 2010 despite a small loss reported. The builder said its loss narrowed to -$0.03 EPS rather than estimates from Thomson Reuters of -$0.22 EPS. PulteGroup’s loss a year ago was a whopping -$2.02 EPS on a loss of $514.8 million. What a difference time can make.
The builder said that it recorded fewer impairment charges and said its land-cost writedowns were lower. Here is the most important notion of all and it may set a new hurdle for other homebuilders to keep up their share price performance: Pulte believes that it is in the position to be profitable this year. Thomson Reuters expects a loss at -$0.43 EPS, and the profit expectation for 2011 is $0.33 EPS.
At a $13.10 close on Tuesday, its 52-week range is $7.84 to $13.91…. At 8:15 AM EST we have shares trading up around $13.20 rather than through the roof. Much of the news may have already been in the stock.
SPDR S&P Homebuilders (NYSE: XHB) closed at $18.86 yesterday and will be one to watch. More importantly and more directly is the iShares Dow Jones US Home Construction (NYSE: ITB) ETF, where Pulte is over 10% of the weighting.
JON C. OGG
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.