Tom Reese/Paul Rubillo, Dividend.com
Home builder Pulte Homes, Inc. (PHM) said late Tuesday that its first-quarter loss narrowed from the previous year, but still badly missed analysts' expectations.
The Michigan-based company reported a first quarter net loss of $514.8 million, or $2.02 per share, compared with a loss of $696.1 million, or $2.75 per share, in the year-ago period. Excluding items, the company lost 97 cents per share. Revenue dropped by 59% to $587.4 million.
On average, Wall Street analysts expected a loss of 54 cents per share on revenue of $604.8 million.
Pulte said that new home orders during the period fell 44% from the same period last year, but rose 71% sequentially from the fourth quarter of 2008.
Pulte is slated to complete its acquisition of fellow home builder Centex Corp (CTX) in the third quarter of this year.
Pulte shares fell $1.61, or -13%, in morning trading Wednesday.
The Bottom Line
Shares of PHM are way off of all-time highs of $47 hit in July of 2005. The stock has technical support in the $8-10 price area. If the shares can firm up, we see overhead resistance around the $13-14.50 price levels. We do not currently rate this non-dividend paying stock, but do watch the stock and homebuilding sector closely.
Pulte Homes, Inc. (PHM) is not recommended at this time, holding a Dividend.com DARS Rating of 0.0 out of 5 stars.
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