PulteGroup tumbles after homebuilder’s earnings trail estimates

Bloomberg News//April 23, 2015//

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PulteGroup Inc., the third-largest U.S. homebuilder, slid after reporting profit that missed analyst estimates.

First-quarter net income fell to $55 million, or 15 cents a share, from $74.8 million, or 19 cents, a year earlier, the Atlanta-based company said in a statement Thursday. The average of 14 analyst estimates was for earnings of 20 cents a share, according to data compiled by Bloomberg.

PulteGroup and other builders are navigating a bumpy market for newly constructed houses. Purchase of new U.S. homes slid 11.4 percent in March from a seven-year high, the Commerce Department reported today.

PulteGroup said first-quarter earnings were hurt by higher income tax expenses, acquisition costs and construction delays that slowed home closings. Orders rose 6 percent from a year earlier to 5,139 homes.