DR Horton (NYSE:DHI), America’s Builder, reported robust financial results for the third quarter of fiscal 2024. Net income per diluted share increased by 5% to $4.10, up from $3.90 in the same quarter of the previous year.
The company’s net income experienced a modest 1% rise, reaching $1.35 billion compared to $1.34 billion in the third quarter of fiscal 2023. Consolidated revenues also saw an uptick, climbing 2% to $10.0 billion from $9.7 billion in the same quarter last year.
For the nine months ending June 30, 2024, DR Horton reported a notable 11% increase in net income per diluted share, amounting to $10.43 compared to $9.39 in the same period of fiscal 2023.
The company’s net income for this nine-month period rose by 7% to $3.5 billion, up from $3.2 billion in the corresponding period of the previous year. Consolidated revenues for the first nine months of fiscal 2024 increased by 7%, reaching $26.8 billion compared to $25.0 billion in the same period of fiscal 2023.
During the third quarter, DR Horton closed 24,155 homes, a 5% increase from the 22,985 homes closed in the same quarter of fiscal 2023. The value of homes closed also grew by 6% to $9.2 billion.
Net sales orders for the quarter increased by 1% to 23,001 homes, although the sales order value remained flat at $8.7 billion. The company’s rental operations generated $64.2 million in pre-tax income on revenues of $413.7 million, from the sale of 790 single-family rental homes and 610 multi-family rental units.
DR Horton Surpasses EPS and Revenue Expectations in Q3
DR Horton’s performance in the third quarter of fiscal 2024 exceeded market expectations. Analysts had projected an earnings per share (EPS) of $3.77 and revenue of $9.64 billion.
In contrast, the company reported an EPS of $4.10 and revenue of $10.0 billion, surpassing both EPS and revenue forecasts. This marks a significant achievement for DR Horton, especially given the economic challenges such as elevated inflation and mortgage interest rates.
The company’s homebuilding revenue for the third quarter increased by 6% to $9.2 billion, compared to $8.7 billion in the same quarter of the previous year. This growth was driven by a 5% increase in the number of homes closed, which totaled 24,155 homes.
The homebuilding segment’s pre-tax income also saw a 7% increase, reaching $1.6 billion with a pre-tax profit margin of 17.0%.
However, it’s worth noting that the company’s rental operations experienced a decline in pre-tax income, which fell to $64.2 million from $162.1 million in the same quarter of fiscal 2023.
This was primarily due to a decrease in the number of single-family rental homes sold, which dropped to 790 homes from 1,754 homes in the prior year quarter.
Despite this, the overall performance of DR Horton remained strong, with consolidated pre-tax income increasing by 1% to $1.8 billion and a pre-tax profit margin of 18.1%.
DR Horton Expects full-year Year Consolidated Revenues to Range Between $36.8 Billion and $37.2 Billion
Based on the current market conditions and the company’s performance in the first nine months of fiscal 2024, DR Horton has updated its guidance for the full fiscal year.
The company expects consolidated revenues to range between $36.8 billion and $37.2 billion, and anticipates closing between 90,000 and 90,500 homes through its homebuilding operations.
This guidance reflects the company’s confidence in its ability to continue delivering strong financial results despite the challenging economic environment.
DR Horton also reiterated its guidance for cash flow provided by homebuilding operations, projecting approximately $3.0 billion for fiscal 2024.
The company plans to provide additional guidance for its fourth quarter during its conference call, scheduled for today, July 18, 2024. The call will offer further insights into the company’s strategic initiatives and financial outlook.
DR Horton has also announced a new share repurchase authorization totaling $4.0 billion, replacing the previous authorization.
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