D.R. Horton Q4 Profit Rises, Results Top Estimates; Hikes Dividend

(RTTNews) - Home builder D.R. Horton Inc. (DHI) reported that its net income for the fourth quarter ended September 30, 2015 increased 44% from last year, reflecting a non-cash tax benefit of $17.5 million from a reduction of the company's valuation allowance on its deferred tax assets. The company increased its quarterly cash dividend by 28% to $0.08 per share.

Donald Horton, Chairman of the Board, said, "With a sales backlog of 10,662 homes and a robust lot supply and inventory of homes available for sale, we are ready to capitalize on market opportunities to deliver another strong performance in fiscal 2016."

Net income for the fourth-quarter increased to $238.9 million or $0.64 per share, from $166.3 million or $0.45 per share, in the same quarter of fiscal 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items. The quarterly results included a non-cash tax benefit of $17.5 million from a reduction of the Company's valuation allowance on its deferred tax assets.

Homebuilding revenue for the fourth quarter increased 28% to $3.1 billion from $2.4 billion last year. Homes closed in the quarter increased 23% to 10,576, compared to 8,612 homes in the year-ago quarter. Wall Street expected revenues of $3.04 billion for the quarter.

Net sales orders for the fourth quarter grew 19% to 8,477 homes from 7,135 homes in the year-ago quarter, and the value of net sales orders increased 22% to $2.5 billion from $2.0 billion.

The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the fourth quarter of fiscal 2015 was 27%.

The company has declared a quarterly cash dividend of $0.08 per common share, an increase of 28% compared to its most recent dividend paid. The dividend is payable on December 14, 2015 to stockholders of record on November 30, 2015.