PulteGroup (PHM) reported net income of $141 million, or $0.37 per share, compared to net income of $2.3 billion, or $5.87 per share, last year.
This beat analyst earnings per share estimations by $0.01, while revenue remained in-line with expectations.
"I am extremely pleased with the benefits we continue to realize from our Value Creation strategy and with the resulting balance sheet strength and flexibility we have today," said Richard Dugas, Jr., chairman, president and CEO of PulteGroup.
"By remaining disciplined in our construction and land investment practices, we continue to improve our returns on invested capital while positioning the Company to take advantage of market opportunities,” he added.
Back on Aug. 25, PulteGroup announced that it had acquired certain real estate assets from Dominion Homes, including control of approximately 8,200 lots and the assumption of 622 homes in backlog. The company’s third quarter results, which reflect the contribution from these assets for approximately 5 weeks of the quarter, include 64 signups and 86 closings from 33 communities.
In addition, home sale revenues for the third quarter increased 4% from the prior year to $1.6 billion, primarily driven by an 8% increase in average selling price to $334,000, partially offset by a 4% decrease in closings to 4,646 homes.
The higher average selling price realized in the quarter reflects price increases implemented by the company in its move-up and active adult communities, which typically carry higher selling prices.
"Our view of the U.S. housing market remains positive, as continued improvements in both the economy and employment provide ongoing support to an industry that continues to benefit from low inventory, low mortgage rates and favorable demographic trends,” Dugas continued.
“Further, we are encouraged by proposed changes at FHFA which have the potential to improve mortgage availability, particularly for first-time homebuyers. Consistent with our expectation for an ongoing recovery in housing, we have authorized $2.4 billion for land investment in 2015, an increase of $600 to $700 million over our expected 2014 land expenditures,” he said.
