PulteGroup, Inc. (NYSE:PHM) reported mixed first-quarter results on Thursday. The homebuilder reported EPS of $1.79, which missed the $1.83 estimate. Sales of $3.409 billion exceeded the $3.385 billion estimate.

Homebuilding revenue totaled $3.34 billion, compared with $3.80 billion a year earlier. Home sale revenues were $3.31 billion versus $3.75 billion a year ago quarter.

Land sale and other revenues declined to $29.3 million from $52.6 million a year ago quarter. Closings volumes fell 7% to 6,102 homes, and the average selling price declined 5% to $542,000.

Reported home sale gross margin came in at 24.4% versus 27.5% in the prior year quarter. This is due to higher incentives of 10.9% of gross sales price, up 290 basis points year over year.

Absorption pace declined by 5% to 2.6 homes per month, while cancellation rates rose slightly to 13% versus 11% last year, reflecting a smaller starting backlog rather ...