Homebuilder PulteGroup’s quarterly profit beats estimates on higher house prices

Houses are seen in Livingston Square, a construction of the PulteGroup, in Livingston, New Jersey

(Reuters) – U.S. homebuilder PulteGroup Inc on Tuesday beat Wall Street estimates for quarterly profit on the back of higher house prices in a tightening market.

Higher prices have helped U.S. homebuilders offset the impact from rising prices of commodities, labor shortages and ongoing supply chain disruptions over the past year.

Shares of the Atlanta, Georgia-based company, which lost nearly 20% last year, rose 1.75% to $52.90 in premarket trade.

Pulte’s sales rose nearly 19% to $5.17 billion for its fourth quarter ended December 31, 2022.

The homebuilder’s quarterly net income rose to $882 million, or $3.85 per share from $663 million, or $2.61 per share, a year earlier.

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Analysts, on average, had expected PulteGroup’s quarterly net income to be $2.93 per share on a revenue of $4.59 billion, according to Refinitiv.

(Reporting by Pratyush Thakur in Bengaluru; Editing by Krishna Chandra Eluri)