D.R. Horton Stock Rises on Q1 Earnings & Revenue Beat

Core Viewpoint - D.R. Horton, Inc. reported first-quarter fiscal 2025 results with earnings and revenues exceeding expectations but showing a decline year-over-year, leading to a 6% increase in share price post-earnings release [1] Financial Performance - Adjusted earnings were $2.61 per share, beating the Zacks Consensus Estimate of $2.40 by 8.8%, but down 7.4% from $2.82 a year ago [4] - Total revenues reached $7.6 billion, a decrease of 1.5% year-over-year, yet above the analysts' expectation of $7.13 billion [4] - The consolidated pre-tax profit margin was 14.6%, down from 16.1% a year ago [5] Segment Performance - Homebuilding revenues were $7.17 billion, down 1.8% from the prior-year quarter, with home sales at $7.15 billion, also down 1.8% [6] - Net sales orders decreased by 1% year-over-year to 17,837 homes, with the value of net orders down 2% to $6.7 billion [7] - Financial Services revenues fell 5.3% to $182.3 million, while Forestar contributed $250.4 million, down from $305.9 million a year ago [8] Balance Sheet and Liquidity - Cash, cash equivalents, and restricted cash totaled $3.07 billion, down from $4.54 billion at the end of fiscal 2024, with total liquidity at $6.5 billion [9] - The company had 36,200 homes in inventory, with 25,700 unsold, and a debt of $5.1 billion, resulting in a debt to total capital ratio of 17% [10] Shareholder Returns - D.R. Horton repurchased 6.8 million shares for $1.1 billion in the fiscal first quarter, with a remaining stock repurchase authorization of $2.5 billion [11] Fiscal 2025 Guidance - The company expects consolidated revenues between $36 billion and $37.5 billion, with homes closed anticipated to be between 90,000 and 92,000 units [12]