D.R. Horton (DHI) Stock Up on Q2 Earnings Beat, Orders Rise

Core Insights - D.R. Horton, Inc. (DHI) reported strong second-quarter fiscal 2024 results, with earnings and revenues exceeding expectations, leading to a 5% increase in shares during pre-market trading [1][2] Earnings, Revenues & Margin Discussion - Adjusted earnings were $3.52 per share, surpassing the Zacks Consensus Estimate of$3.08 by 14.3% and increasing 28.9% year-over-year from $2.73 [2] - Total revenues reached$9.12 billion, a 14% year-over-year increase, exceeding the consensus estimate of $8.27 billion by 10.2$8.5 billion, up 13% from the prior year, with home sales at $8.47 billion, reflecting a 13.7$10.1 billion [3] - The cancellation rate on gross sales orders decreased to 15% from 18% a year ago [3] - The order backlog at the end of the quarter was 17,873 homes, down 7% year-over-year, with a backlog value of $7 billion, down 5$225.6 million, while Forestar contributed $333.8 million in revenues, up from$301.5 million a year ago [3][4] Balance Sheet Details - Cash, cash equivalents, and restricted cash totaled $3.06 billion as of March 31, 2024, down from$3.87 billion at the end of fiscal 2023 [5] - Total homebuilding liquidity was $5.7 billion, with debt totaling$5.9 billion and a debt to total capital ratio of 20% [5] - The trailing 12-month return on equity was 22.2% [5] Share Repurchase and Future Outlook - D.R. Horton repurchased 2.7 million shares for $402.2 million during the quarter, with remaining stock repurchase authorization of$901.1 million as of March 31, 2024 [6] - The company raised its fiscal 2024 revenue guidance to $36.7-$37.7 billion, up from $36-$37.3 billion, and expects homes closed to be between 89,000-91,000 units [7]