Largest U.S. Homebuilder Returns To Profitability (PHM, SKY, BZH, TOL, DHI)
After a 25-quarter losing streak, PulteGroup Inc (PHM) finally turned a profit. The largest U.S. homebuilder earned $76.3 million or 20 cents per share in the three months ended June 30, compared to a loss of -$189.5 million or -74 cents per share in the same period last year. It is the firm’s first quarter in the black since Q3 of 2006. Analysts were expecting a break-even performance, and shares are ahead by 3% on the news.
As a whole, the Homebuilder Stocks Index is ahead by 1% today, and 17 of 18 components are in positive territory over the last week.
Chinese player Skyline (SKY) is the day’s top performer, adding to its sector-leading 9% five-day rally. Billionaire developer Zhang Xin told Bloomberg she doesn’t see any bubbles in China’s real estate market, and “The next few months will be a fantastic time to buy.”
Meanwhile on the domestic front, Beazer Homes USA (BZH), Toll Brothers (TOL), and DR Horton (DHI) are all ahead by 2% or more today. DR Horton met consensus with its fiscal third-quarter results before Tuesday’s opening bell, and Beazer will report its earnings ahead of Thursday’s session.
It will be interesting to see how homebuilders perform in the second half, as economists and investors digest mixed data on the sector. Investors can track the Homebuilder Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
More on this topic (What's this?)
Reality Check: What’s Really Wrong With Homebuilder Stocks? (Blue Grass Portfolio, 8/19/10)
Thematic Roundup: Homebuilder Shorts Flushed Out (Mercenary Trader, 7/20/10)
The Homebuilder ETF Remains In A Powerful Downtrend (ITB, IYR) (Wall Street Sector Selector, 7/26/10)
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