Pulte Homes Inventory Explodes: 52% In 9 Months
The revenues are "soaring" over at Pulte Homes and the stock price followed suit Friday. Another 52 week high rewarded investors of the high flying housing giant on news of a 60% increase in net income year on year. But Las Vegas put a fly in the punchbowl. "The increase came despite a high cancelation rate in Las Vegas. Pulte was forced to slash prices there from 5 percent to 28 percent in October".
Upon reviewing Pultes' financial statements another interesting number is growing; inventory. From a low at the end of 2002 of less than $1 billion, the inventory grew to almost $5.5 billion at the end of 2003. But things were just starting to back up. In the first three quarters of 2004, the number grew to $6 B, $6.8 B and $7.7 B as of September 30, the last quarter reported to Reuters. Folks, that is an increase of 52% in 9 months! I did look at Pultes' EOY 2004 numbers but the inventory was not a line item so I will not include that data. However, it does appear to be at least as high as the third quarter number.