D.R. Horton Q1 Results Top Estimates

(RTTNews) - Homebuilder D.R. Horton, Inc. (DHI) reported Monday a profit for the first quarter that increased 16 percent from last year, reflecting double-digit homebuilding revenue growth amid higher homes sales. Both earnings per share and quarterly revenues topped analysts' expectations.

"Our fiscal 2015 is off to a great start, highlighted by $220.7 million of pre-tax income, on $2.3 billion of revenues. Our position as the largest and most geographically diverse homebuilder provides a strong platform for us to compete for new home sales, evidenced by year-over-year increases in the value of our net sales orders, home sales revenue and sales order backlog of 40%, 37% and 29%, respectively," Chairman Donald Horton said.

The Fort Worth, Texas-based America's Builder reported net income of $142.5 million or $0.39 per share for the first quarter, higher than $123.2 million or $0.36 per share in the prior-year quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report a loss of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Homebuilding revenues for the quarter grew 38 percent to $2.25 billion from $1.64 billion in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $2.08 billion.

Homes sales closed in the quarter grew to 7,973 homes or $2.24 billion from 6,188 homes or $1.63 billion in the year-ago quarter.

Net sales orders totaled 7,370 homes or $2.11 billion, higher than 5,454 homes or $1.50 billion in the same quarter of last year.

The company noted that its cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter was 24 percent.

At the end of the first quarter, the company's sales order backlog stood at 9,285 homes or $2.73 billion, higher than 7,684 homes or $2.11 billion at the end of the year-ago quarter.

The company also declared a quarterly cash dividend of $0.0625 per common share, payable on February 17 to stockholders of record on February 6, 2015.

"We remain intently focused on growing revenues and profits at a double-digit pace, while generating improved returns and cash flows," Horton added.

DHI closed Friday's regular trading session at $23.10, down $0.69 on a volume of 11.34 million shares. In the past 52-week period, the stock has been trading in a range of $19.29 to $26.82.