D.R. Horton Q1 Earnings Exceed Expectations Despite Moderation In Housing Demand

D.R. Horton Inc DHI reported first-quarter FY23 sales growth of 3% year-on-year to $7.26 billion, beating the consensus of $6.40 billion.
Homes closed in the quarter decreased 6% Y/Y to 17,340 homes.
Net sales orders decreased 40% Y/Y in value to $4.9 billion on 13,382 homes.
The company's cancellation rate for the quarter was 27% compared to 15% last year.
As of Dec. 31, 2022, DHI had 43,200 homes in inventory, of which 27,800 were unsold.
Selling, general and administrative expenses rose 10.6% to $737 million.
EPS of $2.76 beat the analyst consensus of $2.26.
The company held $2.6 billion in cash and equivalents as of Dec. 31, 2022.
The company has declared a quarterly cash dividend of $0.25 per common share, payable on Feb. 14, 2023, to stockholders of record on Feb. 7, 2023.
It repurchased 1.4 million shares of common stock for $118.1 million during the quarter, and its remaining stock repurchase authorization on Dec. 31, 2022, was $320.2 million.
"Beginning in June 2022 and continuing through today, we have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty," said Chairman of the board, Donald R. Horton.
"While these pressures may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable."
Price Action: DHI shares are trading higher by 0.75% at $96.40 in pre-market on the last check Tuesday.
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