ARLINGTON, Texas - D.R. Horton, Inc. (NYSE:DHI), the largest homebuilder in the United States, reported a significant increase in net income and consolidated revenues for its second fiscal quarter ended March 31, 2024. The company announced a 24% rise in net income to $1.2 billion, translating to $3.52 per diluted share, compared to the same quarter in the previous fiscal year.
The company's consolidated pre-tax income saw a 23% increase to $1.5 billion, with a pre-tax profit margin of 16.8%. This growth is attributed to a 14% increase in consolidated revenues which reached $9.1 billion. Home closures also rose by 15% to 22,548 homes, with a 14% increase in value to $8.5 billion.
In terms of sales, net sales orders grew by 14% to 26,456 homes and 17% in value to $10.1 billion. The company's rental operations contributed with a pre-tax income of $33.3 million on revenues from sales of 1,109 single-family rental homes and 424 multi-family rental units, totaling $371.3 million.
D.R. Horton's financial position remains strong with a consolidated cash balance of $3.1 billion and an available capacity on its credit facilities of $2.6 billion, amounting to a total liquidity of $5.7 billion. The company's debt-to-total capital ratio was 20.0% as of March 31, 2024.
The company's Chairman of the Board, Donald R. Horton, highlighted the solid results and the increase in net sales orders, pointing out the limited supply of affordable homes and favorable demographics supporting housing demand. In response to the strong performance, D.R. Horton has raised its fiscal 2024 guidance for homes closed and consolidated revenues.
D.R. Horton's strategic focus on affordable product offerings, flexible lot supply, and consistent cash flows from homebuilding operations has positioned the company for continued success. The company's financial flexibility is further underscored by its strong liquidity and low leverage, allowing for disciplined capital investment and commitment to returning capital to shareholders through dividends and share repurchases.
The company's stock repurchase program also remained active, with 2.7 million shares bought back for $402.2 million during the quarter, and a remaining authorization of $901.1 million as of March 31, 2024. A quarterly cash dividend of $0.30 per common share is set to be paid on May 9, 2024, to shareholders of record on May 2, 2024.
This article is based on a press release statement from D.R. Horton, Inc.
InvestingPro Insights
D.R. Horton, Inc. (NYSE:DHI) continues to demonstrate robust financial health and market performance, as reflected in the latest data from InvestingPro. With a market capitalization of $48.36 billion, the company maintains a strong position within the Household Durables industry. The current Price to Earnings (P/E) ratio stands at a favorable 10.11, indicating that the stock may be reasonably valued relative to its earnings.
The company has also shown commendable revenue growth, with a 6.66% increase over the last twelve months as of Q1 2024. This growth is supported by a solid gross profit margin of 24.85%, which contributes to the company's overall profitability. D.R. Horton's ability to maintain and increase dividends is notable, with a dividend growth rate of 20.0% over the last twelve months and a dividend yield of 0.82% as of the latest data.
InvestingPro Tips highlight that D.R. Horton is not only a prominent player in its industry but has also been profitable over the last twelve months. A significant price uptick of 42.89% over the past six months underscores the positive market sentiment towards the company. For those interested in deeper financial analysis and additional insights, InvestingPro offers more tips on D.R. Horton's performance, including its dividend consistency and stock price volatility. There are a total of 11 additional tips available on InvestingPro, which can be accessed at: https://www.investing.com/pro/DHI. For readers looking to take advantage of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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