DR Horton, Inc. (DHI) on Tuesday reported a 19 percent increase in profit for the fourth quarter from last year on strong homebuilding revenue growth that reflected higher home closings. However, earnings per share for the quarter missed analysts' expectations, while revenues beat their estimates.
Fort Worth, Texas-based DR Horton's net income for the fourth quarter rose to $166.3 million or $0.45 per share from $139.5 million or $0.40 per share in the prior-year period. On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 33 percent to $2.42 billion from $1.82 billion in the year-ago period. Homebuilding revenues also grew 33 percent to $2.40 billion from $1.80 billion in the same quarter last year. Analysts were looking for revenue of $2.38 billion for the quarter.
Homes closed in the quarter grew 25 percent to 8,612 homes from 6,866 homes in the prior-year period, while the value of homes closed rose 33 percent to $2.40 billion from $1.80 billion last year.
Net sales orders for the quarter increased 38 percent to 7,135 homes from 5,160 homes in the same period last year. The value of net sales orders rose 41 percent to $2.01 billion from $1.43 billion in the prior year. The company's cancellation rate for the quarter was 28 percent.
At the end of the fourth quarter, DR Horton's sales order backlog increased 21 percent from the year-ago period to 9,888 homes, while the value of the backlog rose 29 percent from last year to $2.86 billion.
For fiscal 2014, DR Horton's net income rose to $533.5 million or $1.50 per share from $462.7 million or $1.33 per share in the prior year. Homebuilding revenue grew 29 percent to $7.86 billion from $6.09 billion last year.
Street expected the company to earn $1.54 per share for the year on revenues of $7.81 billion.
The company declared a quarterly cash dividend of $0.0625 per share, payable on December 15, 2014 to stockholders on record December 1, 2014.
Looking ahead, Donald Horton, chairman said, "With a 29% increase in our beginning backlog value and a greater than 20% year-over-year increase in our October net sales orders, we are off to a great start in fiscal 2015."
DHI closed Monday's trading at $23.43. In Tuesday's pre-market activity, the stock is down $0.18 or 0.77 percent to $23.25.
For comments and feedback contact: editorial@rttnews.com
Business News