D. R. Horton (DHI) Tops Q2 EPS by 38c, Revenues Beat; Offers FY21 Revenues Guidance Above Consensus

D. R. Horton (NYSE: DHI) reported Q2 EPS of $2.53, $0.38 better than the analyst estimate of $2.15. Revenue for the quarter came in at $6.4 billion versus the consensus estimate of $6.1 billion.

Fiscal 2021 Second Quarter Highlights - comparisons to the prior year quarter

• Net income per diluted share increased 95% to $2.53
• Net income attributable to D.R. Horton increased 93% to $929.5 million
• Consolidated revenues increased 43% to $6.4 billion
• Consolidated pre-tax income increased 90% to $1.2 billion
• Consolidated pre-tax profit margin improved 450 basis points to 18.3%
• Homes closed increased 36% to 19,701 homes and 41% in value to $6.2 billion
• Net sales orders increased 35% to 27,059 homes and 47% in value to $8.8 billion
• Repurchased 4.5 million shares of common stock for $350.4 million

Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team delivered strong results in the second fiscal quarter of 2021, highlighted by EPS increasing 95% to $2.53 per diluted share. Our consolidated pre-tax income increased 90% to $1.2 billion on a 43% increase in revenues to $6.4 billion and a 450 basis point increase in our pre-tax profit margin to 18.3%. Our net sales orders increased 35% to 27,059 homes, while our homes in inventory increased 38% to 46,100 homes. These results reflect our experienced teams and production capabilities, industry-leading market share, broad geographic footprint and diverse product offerings across multiple brands.

“Housing market conditions remain very robust, and we are focused on maximizing returns and improving capital efficiency in each of our communities while increasing our market share. Our strong balance sheet, liquidity and low leverage provide us with significant financial flexibility. We plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company, including returning capital to our shareholders through both dividends and share repurchases on a consistent basis.”

GUIDANCE:

D. R. Horton sees FY2021 revenue of $26.8-27.5 billion, versus the consensus of $25.87 billion.

Based on current market conditions and the Company’s results for the first six months of fiscal 2021, D.R. Horton is updating its fiscal 2021 guidance as follows:

• Consolidated revenues of $26.8 billion to $27.5 billion
• Homes closed between 82,500 homes and 84,500 homes
• Income tax rate in a range of 22% to 23% for the third and fourth quarters of fiscal 2021
• Outstanding share count at the end of fiscal 2021 approximately 1.5% lower than at the end of fiscal 2020

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

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