By Christiana Sciaudone
Investing.com - PulteGroup (NYSE:PHM) rose more than 9% on Thursday after smashing forecasts.
Second quarter earnings per share of $1.15 on revenue of $2.59 billion bested analyst estimates for EPS of $0.86 on revenue of $2.52 billion.
Peer home builders Taylor Morrison (NYSE:TMHC), DR Horton (NYSE:DHI) and Lennar (NYSE:LEN) are all trading higher.
“Following a period of demand weakness beginning in late March and into April as COVID-19 first impacted the country, new home sales experienced a material acceleration as the second quarter progressed,” said Chief Executive Officer Ryan Marshall. “The recovery in demand reflects a number of factors, including: low interest rates, a restricted supply of existing-home inventory, pent-up demand following the economic shutdown, the appeal of single-family living in a new home and a desire among some buyers to exit more densely populated urban centers.”
All communities have been reopened to walk-in traffic, Marshall said. The company is also increasing its land acquisition and development spending.
“Given the strength of second quarter sales, we are encouraged about the back half of 2020,” Marshall said.
PulteGroup shares are down 38% from the beginning of the year.