D.R. Horton, Inc. (DHI) Tops Q2 EPS by 4c, Sales Easily Beat

D.R. Horton, Inc. (NYSE: DHI) reported Q2 EPS of $0.38, $0.04 better than the analyst estimate of $0.34. Revenue for the quarter came in at $1.7 billion versus the consensus estimate of $1.55 billion.

Highlights:

• Net income increased 18% to $131.0 million
• Diluted EPS increased 19% to $0.38 per share
• Pre-tax income increased 42% to $201.9 million
• Pre-tax income margin increased 170 basis points to 11.6% of consolidated revenues
• Home sales gross margin increased 210 basis points to 22.5%
• Net sales orders increased 20% in value to $2.4 billion and 9% in homes to 8,569
• Homes closed increased 23% in value to $1.7 billion and 10% in homes to 6,194
• Sales order backlog increased 18% in value to $2.8 billion and 5% in homes to 10,059

Donald R. Horton, Chairman of the Board, said, "Our homebuilding and financial services operations delivered a great quarter, highlighted by pre-tax income of $201.9 million and a pre-tax income margin of 11.6%. The dollar value of our homes sold, closed and in backlog all increased by double-digit percentages. Our net sales orders in the March quarter were up 57% sequentially from the December quarter and up 9% from the March quarter last year. Our average sales price increased 10% to $278,900, reflecting continued pricing power in many of our markets.

“Housing market conditions remain favorable, and as expected, the pace and strength of the improvement varies significantly across our local operating markets. Our broad geographic footprint, diversified product offerings, solid balance sheet and robust finished lot supply put us in a strong position to capture demand and increase revenues and profitability in the second half of our fiscal year."

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

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