D.R. Horton Posts Higher Q4 Profit

reported a rise in its earnings for its fiscal fourth quarter on Tuesday. The Fort Worth, Texas-based company reported quarterly net income of $238.9 million, or $0.64 per share, compared to $166.3 million, or $0.45 per share, in the year-ago period. The latest quarter included a non-cash tax benefit of $17.5 million. Homebuilding revenue jumped 28 percent to $3.09 billion for the fourth quarter, versus $2.42 billion in the year-ago quarter. However, analysts were expecting earnings of $0.62 per share on revenue of $3.04 billion. The average estimate among 30 Estimize users was for earnings of $0.64 per share and revenue of $3.07 billion. Its net sales orders rose 19 percent in homes to 8,477, while sales orders surged 22 percent in value to $2.5 billion. Pre-tax income climbed 35 percent to $338.8 million, while pre-tax margin widened 60 basis points to 10.7 percent in the quarter. D.R. Horton ended the year with $1.4 billion of homebuilding unrestricted cash. The company's board declared a quarterly cash dividend of $0.08 per share. Donald R. Horton, Chairman of the Board, said, "We are well-positioned with our industry-leading market share, broad geographic footprint and diversified product offerings across our D.R. Horton, Emerald Homes and Express Homes brands. We are focused on growing our revenues and pre-tax profits at a double-digit annual pace, while continuing to generate positive cash flows and improved returns. Based on our solid balance sheet, liquidity and current and expected levels of profitability and cash flow, our Board of Directors increased our quarterly cash dividend by 28% to $0.08 per share. With a sales backlog of 10,662 homes and a robust lot supply and inventory of homes available for sale, we are ready to capitalize on market opportunities to deliver another strong performance in fiscal 2016." D.R. Horton shares fell 2.14 percent to close at $28.77 yesterday.