PulteGroup (NYSE:PHM) shares dip 1.7% after its Q3 results reflect continued supply chain bottlenecks.
Still, Q3 reflects " the strong demand environment as higher prices across all buyer segments helped drive a year-over-year increase in home sale revenues of 18%, said President and CEO Ryan Marshall.
Q3 home sale revenues increased 18% over the prior year to $3.3B, driven by a 9% increase in closings to 7,007 homes, combined with an 8% rise in the average price of homes closed to $474K.
Q3 adjusted EPS of $1.82 beats the consensus estimate of $1.79, up from $1.34 in the year ago quarter; revenues of $3.48M exceed the estimate by $50M.
Home sales gross margin of 26.5% in Q3 increases from 24.5% in Q2.
Net new orders in Q3 fell 17% from the prior year to 6,796 homes due to a 14% reduction in community count, as well as company actions to manage the pace of sales to better align with current production levels, the company said.
Unit backlog 33% Y/Y to 19,845 homes; backlog value grows 56% Y/Y to $10.3B.
"The housing industry continues to experience robust demand, but significant disruptions in the manufacture and supply of many building products are extending overall build cycles," Marshall said.
Most homebuilder stocks slip intra-day including: D R Horton (DHI+0.0%), KB Home (KBH-0.3%), Toll Brothers (TOL-0.4%), Lennar (LEN-0.3%), Beazer Homes USA <BZH>> and Meritage Homes (MTH-0.2%).