Market Overview

A Preview Of PulteGroup's Earnings

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On Thursday, October 22, PulteGroup (NYSE: PHM) will release its latest earnings report. Benzinga's outlook for PulteGroup is included in the following report.

Net Income, Earnings, And Earnings Per Share

Earnings and earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equates to net income divided by the number of shares outstanding.

Earnings And Revenue

Sell-side analysts expect PulteGroup's EPS to be near $1.12 on sales of $2.73 billion. In the same quarter last year, PulteGroup reported earnings per share of $1.01 on sales of $2.71 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 10.89%. Sales would be have grown 0.74% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.87 0.70 1.09 0.92
EPS Actual 1.15 0.74 1.14 1.01
Revenue Estimate 2.53 B 2.31 B 2.98 B 2.57 B
Revenue Actual 2.59 B 2.29 B 3.02 B 2.71 B

Stock Performance

Over the last 52-week period, shares are up 13.84%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

 

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Posted-In: Earnings