A Big Acquisition Overshadows PulteGroup's Q4 Earnings Weakness
Residential homebuilder PulteGroup (NYSE: PHM) reported Q4 and full-year 2019 earnings on January 28. Results were mixed, with strong order numbers balanced against poor adjusted quarterly income and earnings numbers.
The market didn't seem to know what to make of the results. Shares, which opened slightly higher, plunged 3% as the market had its first glance at the numbers. However, they immediately rebounded, recouping all of their losses and then some as investors digested the big news from the earnings report: Pulte is acquiring Jacksonville-based Innovative Construction Group (ICG), an offsite manufacturer of framing shells. By the end of the day, shares were up a healthy 6.4%.
Here's why this seemingly small purchase overshadowed the underwhelming numbers.
Source Fool.com
