Shares of Pulte Group (PHM) tumbled nearly 5% today down to $7.54 per share. The home builder is set to report earnings tomorrow and things are still declining for Pulte. The drop before earnings tomorrow appears to be a precursor to a negative earnings report.
Analysts are expecting Pulte to report an EPS loss ranging from 1 cent per share to 9 cents per share. The Street is looking for revenue of $1.1 billion dollars. Those numbers might look bad but they are actually an improvement on Q4′s numbers from last year.
Pulte Group reported a loss of $116.9 million. That’s a loss of 31 cents a share. Revenue was sharply higher however at $1.73 billion dollars.
The Bad News For Pulte Group
Last quarter, new home orders dropped 12% and analyst are forecasting even greater drops this quarter. new home orders will tumble 23 percent and its closings will drop 34 percent.
I am still sitting on the sidelines when it comes to investing in the home builders. I think that a recovery in the housing sector is a long way off. There are easier sectors of the market to make money investing in. I prefer to use REIT’s for getting exposure to the real estate market. They are a little more stable right now and are serving up some pretty good yields.
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