D.R. Horton Surpasses Sales Expectations With 9% Surge, Outlines Optimistic 2024 Outlook

Builder D.R. Horton, Inc DHI reported fourth-quarter FY23 sales growth of 9% year-over-year to $10.50 billion, beating the consensus of $10.01 billion.

Net sales orders increased 39% Y/Y to 18,939 homes and 34% Y/Y in value to $7.3 billion.

Home sales revenues of $8.8 billion (-6.4% Y/Y) on 22,928 (-1.2% Y/Y) homes closed.

EPS was $4.45 (-4.7% Y/Y), beating the consensus of $3.93.

The company's sales order backlog of homes under contract as of Sept. 30, 2023, decreased 23% to 15,197 homes and fell 26% in value to $5.9 billion, compared to the prior year period.

DHI had 42,000 homes in inventory, of which 27,000 were unsold as of Sept. 30, 2023.

Return on equity or ROE was 22.7% for FY23, and homebuilding return on inventory (ROI) was 29.7%.

DHI's net cash provided by operations for fiscal 2023 totaled $4.3 billion, compared to $561.8 million in 2022. Its consolidated cash balance on Sept. 30, 2023, was $3.9 billion, and available capacity on its credit facilities was $3.6 billion, for a total liquidity of $7.5 billion. 

The debt-to-total capital ratio on Sept. 30, 2023 was 18.3%. 

Buyback: DHI repurchased 3.5 million shares of common stock for $423.1 million during the quarter. The company's remaining stock repurchase authorization on Sept. 30, 2023, was $234 million.

Dividend Increased: DHI declared a quarterly cash dividend of $0.30 per common share, an increase of 20% compared to its most recent dividend. The dividend is payable on Nov. 28, 2023, to stockholders of record on November 21, 2023.

FY24 Outlook: DHI sees revenue of $36 billion-$37 billion, versus the consensus of $36.20 billion.

It expects Homes closed to be between 86,000 homes to 89,000 homes. DHI expects cash provided by operations greater than $3 billion and repurchases of ~$1.5 billion.

Price Action: DHI shares are trading higher by 3.7% at $122.10 at the last check Tuesday.

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