D.R. Horton (NYSE:DHI) Releases Earnings Results, Beats Estimates By $0.09 EPS

D.R. Horton (NYSE:DHI) issued its quarterly earnings data on Tuesday. The construction company reported $2.24 earnings per share for the quarter, beating the consensus estimate of $2.15 by $0.09, Zacks reports. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.The business had revenue of $7.56 billion for the quarter, compared to analysts’ expectations of $7.55 billion. During the same period last year, the business earned $2.58 EPS. The business’s revenue was down 2.3% on a year-over-year basis.

Here are the key takeaways from D.R. Horton’s conference call:

• The company delivered a solid quarter with $867M consolidated pre-tax income on $7.6B revenue and a pre-tax margin of 11.5% above guidance, while net sales orders rose 11% YoY to 24,992 homes.
• Inventory and cycle-time improvements were material: completed unsold homes fell 35% YoY and median start-to-close cycle time improved by nearly a month, enabling faster turns and lower carrying costs.
• Sales incentives remain elevated and are expected to stay high for the rest of the year (roughly ~10% of revenues), with ~73% of closings using buydowns — a margin headwind until rates or demand normalize.
• Construction cost trends are improving (stick-and-brick savings offsetting higher lot costs, which were up ~4% YoY), and management expects Q3 home-sales gross margin around 19.7%+ as additional savings flow through.
• Capital allocation remains shareholder-friendly: the company returned $4B over the past 12 months, repurchased $904M in Q2, declared a steady dividend, and maintains FY guidance including ~$3B+ operating cash flow and ~$2.5B in buybacks.

D.R. Horton Price Performance

NYSE:DHI traded down $0.27 during midday trading on Monday, hitting $159.63. The company had a trading volume of 316,119 shares, compared to its average volume of 3,039,578. The company has a market capitalization of $45.27 billion, a PE ratio of 14.96, a P/E/G ratio of 2.54 and a beta of 1.44. The company has a quick ratio of 0.97, a current ratio of 6.46 and a debt-to-equity ratio of 0.27. D.R. Horton has a 52-week low of $114.17 and a 52-week high of $184.54. The stock’s fifty day moving average price is $148.13 and its 200-day moving average price is $150.48.

D.R. Horton Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Thursday, May 7th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, May 7th. D.R. Horton’s dividend payout ratio (DPR) is 16.87%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Citigroup boosted their price target on shares of D.R. Horton from $162.00 to $173.00 and gave the stock a “neutral” rating in a report on Thursday. Truist Financial boosted their price target on shares of D.R. Horton from $140.00 to $150.00 and gave the stock a “hold” rating in a report on Wednesday, April 22nd. Seaport Research Partners reissued a “neutral” rating on shares of D.R. Horton in a report on Tuesday, April 7th. Zacks Research raised shares of D.R. Horton from a “strong sell” rating to a “hold” rating in a report on Friday, March 27th. Finally, UBS Group boosted their price target on shares of D.R. Horton from $193.00 to $206.00 and gave the stock a “buy” rating in a report on Wednesday, April 22nd. Four research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, D.R. Horton presently has an average rating of “Hold” and an average target price of $168.54.

Insider Buying and Selling at D.R. Horton

In other D.R. Horton news, SVP Aron M. Odom sold 260 shares of D.R. Horton stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $167.55, for a total value of $43,563.00. Following the transaction, the senior vice president directly owned 6,457 shares of the company’s stock, valued at $1,081,870.35. The trade was a 3.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.66% of the company’s stock.

Hedge Funds Weigh In On D.R. Horton

A number of large investors have recently bought and sold shares of DHI. Integrated Wealth Concepts LLC grew its position in shares of D.R. Horton by 23.4% in the 1st quarter. Integrated Wealth Concepts LLC now owns 4,229 shares of the construction company’s stock worth $538,000 after buying an additional 803 shares during the last quarter. Geneos Wealth Management Inc. grew its position in shares of D.R. Horton by 295.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 609 shares of the construction company’s stock worth $77,000 after buying an additional 455 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of D.R. Horton in the 2nd quarter worth approximately $302,000. Brown Advisory Inc. grew its position in shares of D.R. Horton by 3.4% in the 2nd quarter. Brown Advisory Inc. now owns 6,319 shares of the construction company’s stock worth $815,000 after buying an additional 208 shares during the last quarter. Finally, Cerity Partners LLC grew its position in shares of D.R. Horton by 8.9% in the 2nd quarter. Cerity Partners LLC now owns 34,926 shares of the construction company’s stock worth $4,503,000 after buying an additional 2,859 shares during the last quarter. 90.63% of the stock is owned by hedge funds and other institutional investors.

D.R. Horton Company Profile

D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company’s core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.

Founded in 1978 by Donald R.