Unpacking Q4 Earnings: PulteGroup (NYSE:PHM) In The Context Of Other Home Builders Stocks

Looking back on home builders stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including PulteGroup (NYSE:PHM) and its peers.

Traditionally, homebuilders have built competitive advantages with economies of scale that lead to advantaged purchasing and brand recognition among consumers. Aesthetic trends have always been important in the space, but more recently, energy efficiency and conservation are driving innovation. However, these companies are still at the whim of the macro, specifically interest rates that heavily impact new and existing home sales. In fact, homebuilders are one of the most cyclical subsectors within industrials.

The 13 home builders stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.6%.

In light of this news, share prices of the companies have held steady as they are up 1.7% on average since the latest earnings results.

PulteGroup (NYSE:PHM)

Having delivered over 850,000 homes since its founding in 1950, PulteGroup (NYSE:PHM) is one of America's largest homebuilders, constructing single-family homes, townhouses, and condominiums for first-time, move-up, and active adult buyers across 46 markets in 25 states.

PulteGroup reported revenues of $4.61 billion, down 6.3% year on year. This print exceeded analysts’ expectations by 6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

“PulteGroup’s fourth quarter and full year financial results reflect our balanced and disciplined approach to the business as we continue to successfully navigate today’s continuously shifting market dynamics,” said PulteGroup President and CEO, Ryan Marshall.

Interestingly, the stock is up 11.1% since reporting and currently trades at $136.99.

Is now the time to buy PulteGroup? Access our full analysis of the earnings results here, it’s free.

Best Q4: Taylor Morrison Home (NYSE:TMHC)

Named “America’s Most Trusted Home Builder” in 2019, Taylor Morrison Home (NYSE:TMHC) builds single family homes and communities across the United States.

Taylor Morrison Home reported revenues of $2.1 billion, down 10.9% year on year, outperforming analysts’ expectations by 7.2%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.90.

Is now the time to buy Taylor Morrison Home? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Meritage Homes (NYSE:MTH)

Originally founded in 1985 in Arizona as Monterey Homes, Meritage Homes (NYSE:MTH) is a homebuilder specializing in designing and constructing energy-efficient and single-family homes in the US.

Meritage Homes reported revenues of $1.44 billion, down 11.5% year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Meritage Homes delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 9% since the results and currently trades at $75.41.

Read our full analysis of Meritage Homes’s results here.

Champion Homes (NYSE:SKY)

Founded in 1951, Champion Homes (NYSE:SKY) is a manufacturer of modular homes and buildings in North America.

Champion Homes reported revenues of $656.6 million, up 1.8% year on year. This number was in line with analysts’ expectations. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 22.6% since reporting and currently trades at $93.22.

Read our full, actionable report on Champion Homes here, it’s free.

NVR (NYSE:NVR)

Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.

NVR reported revenues of $2.71 billion, down 4.7% year on year. This print surpassed analysts’ expectations by 9.4%. It was an exceptional quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $7,517.

Read our full, actionable report on NVR here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.