D.R. Horton Q2 Results Top Estimates

(RTTNews) - Homebuilder D.R. Horton, Inc. (DHI) reported Wednesday a profit for the second quarter that increased 13 percent from last year, reflecting strong double-digit homebuilding revenue growth amid higher homes sales. Both earnings per share and quarterly revenues topped analysts' expectations.

"The spring selling season at D.R. Horton is off to a strong start. In the second quarter, the value of our net sales orders, home sales revenue and sales order backlog increased year-over-year by 33%, 38% and 27%, respectively," Chairman Donald Horton said in a statement.

The Fort Worth, Texas-based America's Builder reported net income of $147.9 million or $0.40 per share for the second quarter, higher than $131.0 million or $0.38 per share in the prior-year quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report a loss of $0.38 per share for the quarter. Analysts' estimates typically exclude special items.

Homebuilding revenues for the quarter grew 38 percent to $2.34 billion from $1.70 billion in the same quarter last year, and topped fifteen Wall Street analysts' consensus estimate of $2.21 billion.

Homes sales closed in the quarter grew to 8,243 homes or $2.32 billion from 6,194 homes or $1.68 billion in the year-ago quarter.

Net sales orders totaled 11,135 homes or $3.17 billion, higher than 8,569 homes or $2.39 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 second quarter was 20 percent.

The company noted that sales increased by double-digit percentages in all three of its brands, reflecting strong performance in the core D.R. Horton communities and the expansion of the luxury brand, Emerald Homes, and its entry-level brand, Express Homes. The company added that its increasingly diverse product offerings enabled it to expand its industry-leading market share.

At the end of the second quarter, the company's sales order backlog stood at 12,177 homes or $3.57 billion, higher than 10,059 homes or $2.82 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 May 27 to stockholders of record on May 15, 2015.

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

DHI closed Tuesday's regular trading session at $28.56, up $0.43 on a volume of 8.26 million shares.