UPDATE: D.R. Horton FQ4 Profit Misses Estimates

D.R. Horton DHI reported weaker-than-expected earnings for the fiscal fourth quarter. The Fort Worth, Texas-based company posted a quarterly profit of $166.3 million, or $0.45 per share, versus a year-ago profit of $139.5 million, or $0.40 per share. Its homebuilding revenue climbed 33% to $2.4 billion from $1.8 billion. However, analysts were expecting earnings of $0.48 per share on revenue of $2.38 billion. Homes closed in the fiscal fourth quarter rose 25% to 8,612, up from 6,866 homes in the year-earlier quarter. Its pre-tax income rose 24% to $250.8 million from $202.8 million. The latest quarter results included $21.3 million of pre-tax inventory and land option charges to cost of sales, versus $27.1 million in the year-ago quarter. Net sales orders jumped 38% to 7,135 homes versus 5,160 homes, while the value of net sales orders climbed 41% to $2.0 billion versus $1.4 billion. Its cancellation rate was 28% in the quarter. D.R. Horton ended the year with $632.5 million of homebuilding unrestricted cash. The company's board has declared a quarterly cash dividend of $0.0625 per common share. Donald R. Horton, Chairman of the Board, said, “We are well-positioned to continue to grow both our revenues and pre-tax profits at a double-digit pace with our solid balance sheet, industry-leading market share, broad geographic footprint, diversified product offerings across our three brands and our inventories of homes and finished lots. With a 29% increase in our beginning backlog value and a greater than 20% year-over-year increase in our October net sales orders, we are off to a great start in fiscal 2015.” D.R. Horton shares gained 1.30% to close at $23.43 yesterday.