Shares of PulteGroup (PHM) and D.R. Horton (DHI) soared in afternoon trading Tuesday after the homebuilders reported earnings that surprised to the upside.
PulteGroup rose 8% while D.R. Horton spiked 14% after both companies indicated that conditions were improving for the industest, which has been beset by higher building costs, rising mortgage rates, and cautious consumers this year.
In the companies’ earnings calls, D.R. Horton CEO Paul Romanowski noted a reduction in its “stick and brick costs” and declared the company wasn’t having labor availability issues. Similarly, PulteGroup CFO James Ossowski highlighted that the company does not see as large a tariff impact as it did previously.
“During our Q1 call, we indicated a potential impact of tariffs of approximately $5,000 per unit that could hit in the latter part of Q4,” Ossowski declared. “At this time, we now expect any impact from tariffs in Q4 to be lower…”
PulteGroup CEO Ryan Marshall also noted that a drop in mortgage rates in the last two weeks of June stimulated activity, though the houtilizing market still remains uncertain as affordability challenges weigh on many would-be acquireers.
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