PulteGroup, Inc.(NYSE:PHM) shares are trading higher after the company reported fourth-quarter results.

Total revenues of $4.92 billion topped the consensus of $4.635 billion. Adjusted EPS of $3.50 beat the consensus estimate of $3.27.

Home sale revenues rose 13% to $4.7 billion, with higher revenues reflecting a 6% increase in closings to 8,103 homes and an average sales price of $581,000 (6% rise Y/Y).

The gross margin for home sales stood at 27.5%, vs. 28.9% a year ago. Net new orders fell to 6,167 from 6,214 homes last year. However, the dollar value of net new orders rose 4% to $3.5 billion in the fourth quarter.

At the end of the fourth quarter, the company’s backlog was 10,153  homes, valued at $6.5 billion.

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The company ended the quarter with $1.6 billion of cash and a debt-to-capital ratio of 11.8%.

During the quarter, the company repurchased 2.5 million of its common shares for $320 million, or an average price of $129.90 per share.

Ryan Marshall, PulteGroup President and CEO, said, “These results allowed us to invest $5.3 billion into our business, return $1.4 billion to our shareholders through stock repurchases and dividends, and retire $310 million of senior notes.”

“Despite Federal Reserve actions to lower short-term interest rates, mortgage interest rates remained elevated in the fourth quarter, which impacted buyer demand as homebuyers continue to face affordability challenges,” added Marshall.

The company’s Board of Directors has approved a $1.5 billion increase to the company’s share repurchase authorization, bringing the remaining share repurchase authorization to $2.1 billion.

Price Action: PHM shares are trading higher by 3.33% at $116.75 in premarket at the last check Thursday.

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