Summary
D.R. Horton, Inc. (DHI) reported solid financial results for the second quarter of fiscal year 2024, showcasing a resilient business model in the current economic climate. The company saw an increase in both home sales revenues and the number of homes closed compared to the prior year, driven by a significant 35% rise in net sales orders. Despite ongoing inflationary pressures and elevated mortgage rates, demand for new homes remained strong, with DHI leveraging pricing adjustments and incentives to adapt to market conditions. The company's financial services segment experienced substantial growth in both revenues and pre-tax income, indicating strong captive financing support for homebuyers. The balance sheet remains robust, with a healthy inventory of owned and controlled lots and a strong focus on managing inventory levels relative to demand. DHI's commitment to shareholder returns is evident through its ongoing share repurchase program and consistent dividend payments. The company's strategic focus on affordability, operational efficiency, and a diversified business model across homebuilding, rental, lot development, and financial services positions it well to navigate market uncertainties and continue delivering value to its shareholders.
Financial Highlights
37 data points| Revenue | $7.73B |
| Cost of Revenue | $5.72B |
| Gross Profit | $2.01B |
| SG&A Expenses | $835.00M |
| Net Income | $955.70M |
| EPS (Basic) | $2.84 |
| EPS (Diluted) | $2.82 |
| Shares Outstanding (Basic) | 333.30M |
| Shares Outstanding (Diluted) | 335.70M |
Key Highlights
- 1Total revenues increased by 6% to $7.7 billion for the three months ended December 31, 2023, compared to $7.3 billion in the prior year period.
- 2Home sales revenues increased by 8% to $7.3 billion, with homes closed increasing by 12% to 19,340.
- 3Net sales orders increased significantly by 35% to 18,069 homes, with a corresponding 38% increase in value to $6.8 billion.
- 4Diluted earnings per share increased by 2% to $2.82 compared to $2.76 in the prior year period.
- 5The financial services segment demonstrated strong performance, with revenues up 41% and pre-tax income increasing by 263% to $66.0 million.
- 6Homebuilding inventories increased to $19.4 billion, indicating continued investment in land and construction, while controlled lots through purchase contracts remain high at 76% of the total owned and controlled position.
- 7The company maintained a strong balance sheet with a debt-to-total capital ratio of 18.6% and continued returning capital to shareholders through dividends and share repurchases.