PulteGroup’s (PHM) first-quarter profits surprisingly slid after home sales fell 28% in the pricey U.S. Northeast due to construction delays, according to an article in Reuters.
Home sales revenue, which excludes land sale and financial services revenue, was flat at $1.09 billion.
Total revenue rose 1.3 percent to $1.13 billion.
Net income fell to $55 million, or 15 cents per share, in the quarter, from $74.8 million, or 19 cents per share, a year earlier when net income included a benefit of 2 cents per share related to the reversal of mortgage repurchase reserves.
“Homebuilding revenues of $1.088 billion were below our $1.222 billion forecast on slower-than-expected growth in average prices, as well as unit closings which were down 2.1% Y/Y versus our +5.6% forecast,” said Sterne Agee analysts Jay McCanless.
Meanwhile, according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family houses in March 2015 tumbled back down to a seasonally adjusted annual rate of 481,000, 11.4% below last month’s revised estimate of 543,000.
