PulteGroup Reports Q4 Earnings Beat

(Reuters) – U.S. homebuilder PulteGroup (NYSE:PHM) exceeded Wall Street expectations in its fourth-quarter results on Thursday. Strategic promotions boosted home sales despite high mortgage rates, leading to a more than 3% increase in premarket shares.

The Atlanta-based company utilized targeted sales incentives to attract consumers hesitant to purchase new homes, as 30-year mortgage rates exceeded 7% earlier this month, the highest since May 2024.

> “Despite Federal Reserve actions to lower short-term interest rates, mortgage interest rates remained elevated in the fourth quarter, impacting buyer demand as homebuyers continue to face affordability challenges,” said PulteGroup CEO Ryan Marshall.

Additionally, the homebuilder announced a $1.5 billion increase to its share repurchase authorization.

The company reported a 6% increase in closings to 8,103 homes, compared to the previous year.

PulteGroup’s total revenue for the quarter ending Dec. 31 was $4.92 billion, surpassing analysts’ average estimate of $4.64 billion, according to data compiled by LSEG.

Earnings were recorded at $4.43 per share, exceeding analysts’ predictions of $3.27 per share.