(Reuters) - U.S. homebuilder PulteGroup Inc (NYSE:PHM) on Tuesday beat Wall Street estimates for first-quarter profit and revenue as home prices stayed elevated amid limited supply.
A shortage of homebuilding supplies had affected the availability of new homes, cushioning prices from the impact of sky-high interest rates that curbed the spending power of potential buyers.
Still, February data signaled that the worst of the housing market downturn could be over as U.S. single-family homebuilding and permits for future construction rebounded.
Pulte reported quarterly profits of $2.35 per share, beating analysts' estimates of $1.81, according to Refinitiv IBES.
The company also announced a $1 billion increase to its share buyback program.
"With interest rates more stable and the supply of new and existing homes generally in balance with demand, we remain optimistic about the housing industry," CEO Ryan Marshall said in the company's earnings statement.
The Atlanta-based company said it closed 6,394 homes in the quarter, up 6% from the prior year, and reported a 9% increase in average selling prices.
Revenue for the first quarter ended March 31 was $3.58 billion, compared with estimates of $3.27 billion.