D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected results in third-quarter fiscal 2019, thanks to the key spring selling season, its industry-leading market share, broad geographic footprint and affordable product offerings across multiple brands.
Earnings came in at $1.26 per share in the quarter, surpassing the Zacks Consensus Estimate of $1.06 by 18.9%. The reported figure also increased 7% from the year-ago profit level of $1.18.
Revenue Discussion
Total revenues (Homebuilding, Forestar and Financial Services) came in at $4.91 billion, up 10.6% year over year. The reported figure also topped the consensus mark of $4.51 billion.
Home Closings and Orders
Homebuilding revenues of $4.76 billion increased 10% from the prior-year quarter. Home sales also increased 11% year over year to $4.73 billion, aided by higher home deliveries. However, land/lot sales and other revenues were $27.5 million, decreasing from $59.1 million a year ago.
Home closings increased 13% to 15,971 homes and 11% from the prior-year quarter to $4.73 billion in value. It recorded growth across all regions comprising East, Midwest, Southeast, Southwest, West and South Central. Meanwhile, average home price dropped 2% from the prior-year quarter to $296,450.
Net sales orders increased 6.4% year over year to 15,588 homes, with improvement in East, Midwest, Southeast and West, except South Central and Southwest. Value of net orders improved 7.8% year over year to $4.71 billion. The cancellation rate was 20%, lower than 21% in the prior-year quarter.
Quarter-end sales order backlog (under contract) decreased marginally by 0.2% from the prior-year quarter to 16,507 homes. Backlog value also declined 0.2% from the year-ago quarter to $4.97 billion.
Revenues from the Financial Services segment increased 23.2% from the year-ago level to $119.6 million. Forestar contributed $88.2 million to its quarterly revenues, reflecting an improvement from $23.6 million a year ago.
Margins
The company’s consolidated pre-tax margin contracted 110 basis points to 12.8% in the quarter from 13.9% a year ago.
Balance Sheet
D.R. Horton’s cash, cash equivalents and restricted cash totaled $885.3 million as of Jun 30, 2019 compared with $1,506 million on Sep 30, 2018.
Zacks Rank
Currently, D.R. Horton carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
PulteGroup Inc.’s (PHM - Free Report) second-quarter 2019 earnings and revenues surpassed the respective Zacks Consensus Estimate. Both earnings and revenues, however, decreased 3.4% from the year-ago level.
NVR, Inc. (NVR - Free Report) reported second-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate. Also, the reported figure increased 8.2% from the prior-year quarter. Total revenues (Homebuilding & Mortgage Banking fees combined) were $1.8 billion in the quarter, up 1% year over year on higher deliveries and prices.
Lennar Corporation (LEN - Free Report) reported better-than-expected results in second-quarter fiscal 2019 (ended May 31, 2019), after missing estimates in the preceding quarter. Earnings and revenues increased on a year-over-year basis during the quarter.
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D.R. Horton, Inc. (DHI - Free Report) reported better-than-expected results in third-quarter fiscal 2019, thanks to the key spring selling season, its industry-leading market share, broad geographic footprint and affordable product offerings across multiple brands.
Earnings came in at $1.26 per share in the quarter, surpassing the Zacks Consensus Estimate of $1.06 by 18.9%. The reported figure also increased 7% from the year-ago profit level of $1.18.
Revenue Discussion
Total revenues (Homebuilding, Forestar and Financial Services) came in at $4.91 billion, up 10.6% year over year. The reported figure also topped the consensus mark of $4.51 billion.
Home Closings and Orders
Homebuilding revenues of $4.76 billion increased 10% from the prior-year quarter. Home sales also increased 11% year over year to $4.73 billion, aided by higher home deliveries. However, land/lot sales and other revenues were $27.5 million, decreasing from $59.1 million a year ago.
Home closings increased 13% to 15,971 homes and 11% from the prior-year quarter to $4.73 billion in value. It recorded growth across all regions comprising East, Midwest, Southeast, Southwest, West and South Central. Meanwhile, average home price dropped 2% from the prior-year quarter to $296,450.
Net sales orders increased 6.4% year over year to 15,588 homes, with improvement in East, Midwest, Southeast and West, except South Central and Southwest. Value of net orders improved 7.8% year over year to $4.71 billion. The cancellation rate was 20%, lower than 21% in the prior-year quarter.
Quarter-end sales order backlog (under contract) decreased marginally by 0.2% from the prior-year quarter to 16,507 homes. Backlog value also declined 0.2% from the year-ago quarter to $4.97 billion.
Revenues from the Financial Services segment increased 23.2% from the year-ago level to $119.6 million. Forestar contributed $88.2 million to its quarterly revenues, reflecting an improvement from $23.6 million a year ago.
Margins
The company’s consolidated pre-tax margin contracted 110 basis points to 12.8% in the quarter from 13.9% a year ago.
Balance Sheet
D.R. Horton’s cash, cash equivalents and restricted cash totaled $885.3 million as of Jun 30, 2019 compared with $1,506 million on Sep 30, 2018.
Zacks Rank
Currently, D.R. Horton carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
PulteGroup Inc.’s (PHM - Free Report) second-quarter 2019 earnings and revenues surpassed the respective Zacks Consensus Estimate. Both earnings and revenues, however, decreased 3.4% from the year-ago level.
NVR, Inc. (NVR - Free Report) reported second-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate. Also, the reported figure increased 8.2% from the prior-year quarter. Total revenues (Homebuilding & Mortgage Banking fees combined) were $1.8 billion in the quarter, up 1% year over year on higher deliveries and prices.
Lennar Corporation (LEN - Free Report) reported better-than-expected results in second-quarter fiscal 2019 (ended May 31, 2019), after missing estimates in the preceding quarter. Earnings and revenues increased on a year-over-year basis during the quarter.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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