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D. R. Horton (DHI) Misses Q4 EPS by 3c, Sales Beat

November 11, 2014 7:07 AM EST

D. R. Horton (NYSE: DHI) reported Q4 EPS of $0.45, $0.03 worse than the analyst estimate of $0.48. Revenue for the quarter came in at $2.42 billion versus the consensus estimate of $2.38 billion.

Net sales orders for the fourth quarter ended September 30, 2014 increased 38% to 7,135 homes from 5,160 homes in the year-ago quarter and the value of net sales orders increased 41% to $2.0 billion from $1.4 billion. The Company’s cancellation rate (cancelled sales orders divided by gross sales orders) for the fourth quarter of fiscal 2014 was 28%. Net sales orders for the fiscal year ended September 30, 2014 increased 18% to 29,709 homes from 25,120 homes in fiscal 2013 and the value of net sales orders increased 27% to $8.3 billion from $6.6 billion. The Company’s sales order backlog of homes under contract at September 30, 2014 increased 21% to 9,888 homes from 8,205 homes at September 30, 2013. The value of the backlog increased 29% to $2.9 billion at September 30, 2014 from $2.2 billion a year ago.

Donald R. Horton, Chairman of the Board, said, “With the largest market share in Company history and 46% more homes closed than any other builder in the most recently reported twelve-month period, D.R. Horton has solidified its position to be the nation’s largest builder for the 13th consecutive year in calendar 2014. We completed fiscal 2014 with strong profitability in our fourth quarter with $250.8 million of pre-tax income and a 10.1% pre-tax operating margin. Net homes sold, closed and in backlog all increased by double-digit percentages in both the fourth quarter and the full fiscal year. For the year, our homebuilding and financial services operations generated a 24% increase in pre-tax income to $814.2 million, on consolidated revenues of $8.0 billion.

“We are well-positioned to continue to grow both our revenues and pre-tax profits at a double-digit pace with our solid balance sheet, industry-leading market share, broad geographic footprint, diversified product offerings across our three brands and our inventories of homes and finished lots. With a 29% increase in our beginning backlog value and a greater than 20% year-over-year increase in our October net sales orders, we are off to a great start in fiscal 2015.”

For earnings history and earnings-related data on D. R. Horton (DHI) click here.



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