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D.R. Horton (DHI) Q3 Earnings & Revenues Surpass Estimates
DHID.R. Horton(DHI) ZACKS·2024-07-18 17:42

Core Insights - D.R. Horton, Inc. reported strong third-quarter fiscal 2024 results, with earnings and revenues exceeding Zacks Consensus Estimates, driven by limited supply of affordable homes and favorable housing demand demographics [1][2] Earnings, Revenues & Margin Discussion - Adjusted earnings were 4.10pershare,beatingtheconsensusestimateof4.10 per share, beating the consensus estimate of 3.80 by 7.9% and increasing 5% from the previous year [2] - Total revenues reached 10billion,a210 billion, a 2% year-over-year increase, surpassing the consensus mark of 9.68 billion by 2.9% [2] - The consolidated pre-tax profit margin was 18.1% for the quarter [2] Segment Details - Homebuilding revenues were 9.24billion,up69.24 billion, up 6% year-over-year, with home sales at 9.23 billion, reflecting a 6.1% increase [3] - Home closings rose 5% to 24,155 homes, while net sales orders increased 1% to 23,001 homes [3] - The value of net orders remained flat at 8.7billion,withacancellationrateof188.7 billion, with a cancellation rate of 18% [3] - Order backlog decreased by 12% year-over-year to 16,792 homes, with a backlog value of 6.6 billion [3] - Financial Services revenues increased 6% to 242.3million,whileForestarcontributed242.3 million, while Forestar contributed 318.4 million, down from 368.9millionayearago[3][4]BalanceSheetDetails−Cashandcashequivalentstotaled368.9 million a year ago [3][4] Balance Sheet Details - Cash and cash equivalents totaled 2.99 billion, down from 3.87billionattheendoffiscal2023[5]−Totalhomebuildingliquiditywas3.87 billion at the end of fiscal 2023 [5] - Total homebuilding liquidity was 5.8 billion, with debt at 5.7billionandadebttototalcapitalratioof18.85.7 billion and a debt to total capital ratio of 18.8% [5] - The trailing 12-month return on equity was 21.5% [5] - The company repurchased 3 million shares for 441.4 million in the fiscal third quarter, with remaining stock repurchase authorization of 459.7million[6]UpdatedFiscal2024Views−D.R.Hortonexpectsconsolidatedrevenuesbetween459.7 million [6] Updated Fiscal 2024 Views - D.R. Horton expects consolidated revenues between 36.8 billion and 37.2billion,slightlyrevisedfrompreviousexpectations[7]−Homesclosedareanticipatedtobebetween90,000and90,500units[7]−Cashflowfromhomebuildingoperationsisprojectedtobenearly37.2 billion, slightly revised from previous expectations [7] - Homes closed are anticipated to be between 90,000 and 90,500 units [7] - Cash flow from homebuilding operations is projected to be nearly 3 billion, with share repurchases now estimated at approximately $1.8 billion [7]