Pulte Homes Posts Wider-than-Expected Loss

Pulte Homes (PHM 9.84, +0.61) reported a wider-than-expected third quarter loss, as the troubled U.S. housing market continues to weigh on the Bloomfield Hills, Mich.-based homebuilder.

Pulte Homes reported a third quarter loss of $1.15 per share, $0.46 worse than the First Call consensus that expected a loss of $0.69.

Revenues fell 30.0% year-over-year to $1.09 billion, short of the $1.23 billion consensus.  The lower revenue reflects a 23% decrease in closings to 4,166 homes, combined with a 10% decrease in average selling price to $253,000.

"Pulte's Q3 results reflect a homebuilding industry that continues its transition toward more stable market conditions as lower prices and historically low mortgage rates are helping to support homebuyer demand," said CEO Richard J. Dugas. "Challenges remain, however, as economic weakness, foreclosures, rising unemployment and recent uncertainty over the expiration of the federal tax credit continue to influence buyer behavior."