“PulteGroup Inc. (PHM), the best performer in the Standard & Poor’s 500 Index (SPX) last year, said fourth- quarter profit quadrupled as the homebuilder’s sales increased amid a U.S. real estate revival.
Net income was $58.7 million, or 15 cents a share, compared with $13.8 million, or 4 cents, a year earlier, the Bloomfield Hills, Michigan-based company said today in a statement. Revenue climbed to $1.57 billion from $1.26 billion.
Demand for new houses is rising as inventories of existing properties tighten and mortgage rates hover near record lows. U.S. new-home sales jumped 20 percent last year to the highest since 2009. PulteGroup, the largest homebuilder by market value, has lowered costs to boost profitability as orders climb.
“They’re improving in line with the market,” Megan McGrath, an analyst at MKM Partners LLC inStamford, Connecticut, said by telephone yesterday. “They lagged it for a little bit, especially on the margin side. But the rising tide of housing has helped them out.”
McGrath has a neutral rating on the stock….”
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