D.R. Horton's 2Q net income spikes 46%
D.R. Horton (DHR) reported a fiscal second-quarter earnings of $40.6 million, or 13 cents a share, on strong results from its homebuilding and financial services segments.
The reported earnings are a 46% boost from a year earlier when the homebuilder earned $27.8 million, or 9 cents a share.
The Fort Worth, Texas-based homebuilder beat earnings per share estimates by analysts, who predicted 7 cents a share, according to Zack’s Investment Research.
Homebuilding revenue in the quarter ended March 31 increased 28% to $935.6 million from $733.1 million in the year-ago quarter. Homes closed in the quarter increased 21% to 4,240, compared to 3,516 homes in the year-ago quarter.
Net sales orders for the second quarter increased 19% to 5,899 homes from 4,943 homes in the year-ago quarter, while the value of net sales orders increased 28% to $1.3 billion from $1 billion. The company's cancellation rate for the second quarter was 22%.
D.R. Horton's sales order backlog rose 17% to 6,189 homes from 5,281 a year earlier. The value of the backlog increased 25% to $1.4 billion from $1.1 billion a year ago.
“We ended the quarter with almost $1 billion in homebuilding cash and marketable securities, even after increasing our homes in inventory and investing in land and lots,” said Chairman Donald Horton. “These results reflect that we are using our strong operating position to profitably grow our business in the current housing environment."