D.R. Horton Stock Soars After Topping Q2 Estimates, Guides FY23 Revenue Above Consensus

D.R. Horton, Inc. DHI reported sales of $7.97 billion, a slight decline of 0.33% year-over-year, beating the consensus of $6.47 billion, for the second-quarter of 2023.

• EPS was $2.73, beating the consensus of $1.93.
• Home sales revenues were $7.45 billion (-0.66% Y/Y) on 19,664 homes closed (-1% Y/Y).
• Q2 Net sales orders decreased 5% Y/Y to 23,142 homes and 11% Y/Y in value to $8.6 billion.
• Consolidated pre-tax income of $1.2 billion, with a pre-tax profit margin of 15.6%, compared to 23.5% in 2Q22.
• On March 31, DHI had 43,600 homes in inventory, of which 24,800 were unsold.
• DHI’s return on equity, or ROE, was 27.2% for the trailing twelve months ended March 31, and homebuilding return on inventory (ROI) was 35.1%.
• The Arlington, Texas-based company ended the quarter with $2.4 billion of unrestricted homebuilding cash and $2 billion of available capacity on its revolving credit facility.
• Homebuilding debt on March 31, totaled $2.7 billion, which includes $400 million of senior notes that mature in August 2023. The debt-to-total capital ratio was 11.5%.
• Dividend: The company declared a quarterly cash dividend of $0.25 per common share that is payable on May 10, 2023, to stockholders of record on May 3, 2023.
• DHI repurchased 3.2 million shares for $310 million during the quarter.
• FY23 Outlook: DHI sees FY22 revenue of $31.5 billion-$33 billion versus the consensus of $28.5 billion.
• It expects Homes closed to be between 77,000-80,000 homes and Rental homes/units closed between 4,000-5,000 homes/units.
• Price action: DHI shares are trading higher by 4.36% at $106.30 premarket on Thursday.
• Image by Michal Jarmoluk from Pixabay