PulteGroup’s shares rose 5.8% after earnings, as third-quarter EPS of $2.53 and a 24.8% gross margin appear to have outweighed signs of slowing demand. The quarter was not unambiguously strong: closings came in slightly below the company’s guide, and community traffic fell as higher rates weighed on buyers.
- Q3 earnings were $476 million, or $2.53 per share; gross margin was 24.8%.
- The company delivered almost 7,000 homes, with closings slightly below its guide.
- Net new orders fell 6% year over year to 6,210 homes. Absorption pace declined 13%, partly offset by a 7% increase in average community count.
- Traffic to communities was down 14% year over year and 11% sequentially from Q2; management said the slowdown continued into the first few weeks of October.
- The cancellation rate was 10%, down from 12% a year earlier.
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