Summary
D.R. Horton, Inc. (DHI) reported strong revenue growth in the first quarter of fiscal year 2019, with homebuilding revenues increasing 6% year-over-year to $3.4 billion, driven by a 7% increase in homes closed. The company also saw a 3% rise in net sales orders, indicating continued demand. Despite a slight decrease in home sales gross margin to 20.0%, DHI's overall financial performance remained robust, with net income attributable to D.R. Horton increasing 52% to $287.2 million. The company continued to expand its land and lot position, a key strategic focus, and maintained a healthy balance sheet with a debt-to-capital ratio of 26.8% at quarter-end. Strategic acquisitions in the quarter, including Westport Homes, Classic Builders, and Terramor Homes, contributed to growth in the Midwest and East regions. DHI's financial services segment also performed well, with revenues up 5% and pre-tax income up 6%, demonstrating the synergistic benefits of its integrated business model. The company remains focused on leveraging its scale, geographic diversification, and operational efficiency to drive future profitability and shareholder value.
Financial Highlights
37 data points| Revenue | $3.52B |
| Cost of Revenue | $2.75B |
| Gross Profit | $767.90M |
| SG&A Expenses | $402.80M |
| Net Income | $286.70M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.76 |
| Shares Outstanding (Basic) | 375.10M |
| Shares Outstanding (Diluted) | 380.10M |
Key Highlights
- 1Total revenues increased by 6% to $3.52 billion in the three months ended December 31, 2018, compared to $3.33 billion in the prior year period.
- 2Net income attributable to D.R. Horton, Inc. rose significantly by 52% to $287.2 million ($0.76 per diluted share) from $189.3 million ($0.49 per diluted share) in the prior year period.
- 3Homebuilding revenues increased 6% to $3.4 billion, with homes closed up 7% to 11,500 units, indicating strong operational execution.
- 4The company completed three strategic homebuilding acquisitions (Westport Homes, Classic Builders, Terramor Homes) during the quarter, adding inventory, lots, and backlog.
- 5Home sales gross margin slightly decreased by 80 basis points to 20.0%, reflecting increased cost of homes sold relative to average selling price.
- 6DHI's financial services segment showed growth, with revenues up 5% to $85.3 million and pre-tax income up 6% to $23.6 million.
- 7Total assets grew to $14.54 billion from $14.11 billion at the end of the previous fiscal year, while total equity also increased to $9.30 billion from $9.16 billion.