D.R. Horton Earnings Trump Estimates, Strong Revenue, Shares Pop
D.R. Horton (NYSE: DHI), America's homebuilder, reported fiscal first quarter earnings Tuesday pre-market that beat analyst estimates and shares rose. Revenue was also strong in the quarter, beating estimates, and shares rose in the pre-market.
For the fiscal first quarter ended December 2012, D.R. Horton reported earnings per share of $0.20, better than analyst forecasts of earnings per share of $0.14. In the same period a year ago, D.R. Horton reported earnings per share of $0.09, representing earnings growth of 122 percent year-over-year.
Revenue was also strong in the quarter at $1.2 billion compared to estimates of $1.1 billion in revenue. Also, homes closed in the quarter increased to 5,182 from 4,118 a year ago, an increase of 26 percent from a year ago. The company also reported that its cash position grew $643.1 million in the quarter.
Donald R. Horton, Chairman of the Board, said, “This quarter was our most profitable first quarter since 2007, with $107.9 million of pre-tax income, a 270% increase from the year-ago quarter. We experienced substantial increases in the number of homes sold, closed and in backlog compared to the year-ago quarter. At the same time, our average sales price has increased due to pricing power, geographic mix and larger average home size. As a result, we achieved dollar value increases in homes sold of 60%, homes closed of 38% and backlog of 80%."
“We experienced broad improvement in demand in most of our markets this quarter, and we significantly increased our investments in homes under construction, finished lots, land and land development to capture this increasing demand. D.R. Horton is the best positioned it has been in its 35 year history. We are looking forward to the spring selling season with optimism.”
D.R. Horton shares rose 4.18 percent pre-market to $22.20 per share, just below the 52-week high of $22.79 per share.
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