Goldman Sachs' Key Thoughts On PHM Pre-Announcement

With regard to PulteGroup, Inc.'s PHM pre-announced January and February signups/orders, Goldman Sachs released a report with three key thoughts:

“1) Pulte results through February are roughly in-line with our estimates. We are currently forecasting an 8% decline for the March quarter vs. the 7% decline the company reported through February. We see no reason to raise our order estimates at this time considering the in-line Jan-Feb orders and the tougher comparisons for March.

“2) Pulte's 22% mom increase in February over January is in excess of the historic 13% increase in February new homes sales (on an unadjusted basis).”

“3) Following a string of poor housing news and relative silence from other builders, this is a modestly positive announcement. Pulte's shares are likely to trade up on the back of this announcement given its recent underperformance within the group.”

PulteGroup currently trades at $6.54.