D R Horton Misses Q4 Consensus On Moderation In Housing Demand Due To Higher Mortgage Rates, Economic Uncertainty

  • D R Horton Inc DHI reported fourth-quarter FY22 sales growth of 18.9% year-over-year to $9.64 billion, missing the consensus of $9.97 billion.
  • EPS was $4.67, missing the consensus of $5.09.
  • Home sales revenues increased 23.4% Y/Y to $9.37 billion on 23,212 (+6% Y/Y) homes closed. Net sales orders decreased 10% in value to $5.4 billion on 13,582 (-15% Y/Y) homes sold.
  • The consolidated pre-tax profit margin was flattish Y/Y at 21.4%.
  • On September 30, 2022, D R Horton had 46,400 homes in inventory, of which 27,200 were unsold.
  • Its homebuilding land and lot portfolio totaled 573,200 lots at the end of the quarter, of which 23% were owned and 77% were controlled through land purchase contracts.
  • Subsequent to year-end, the company raised the quarterly cash dividend by 11% Y/Y to $0.25.
  • Donald R. Horton, Chairman of the Board, said, "During most of the year, demand for our homes was strong. Beginning in June and continuing through today, we have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty. While these pressures may persist for some time, the supply of homes at affordable price points remains limited, and demographics supporting housing demand remain favorable."
  • Price Action: DHI shares are trading higher by 6.58% at $78.08 on the last check Wednesday.
  • Photo Via Company
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