D.R. Horton (DHI) Q3 Earnings & Revenues Surpass Estimates

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 $4.10 per share, beating the consensus estimate of $3.80 by 7.9% and increasing 5% from the previous year [2] - Total revenues reached $10 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 $9.24 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 $8.7 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 $242.3 million, while Forestar contributed $318.4 million, down from $368.9 million a year ago [3][4] Balance Sheet Details - Cash and cash equivalents totaled $2.99 billion, down from $3.87 billion at the end of fiscal 2023 [5] - Total homebuilding liquidity was $5.8 billion, with debt at $5.7 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 $459.7 million [6] Updated Fiscal 2024 Views - D.R. Horton expects consolidated revenues between $36.8 billion and $37.2 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]