D. R. Horton Earnings: Five Quarters in a Row of Expanding Margins, Net Income Climbs

S&P 500 (NYSE:SPY) component D. R. Horton Inc. (NYSE:DHI) reported net income above Wall Street’s expectations for the fourth quarter. D.R. Horton is a homebuilding company that constructs and sells homes in the United States and provides mortgage financing and title agency services to homebuyers.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

D. R. Horton Inc. Earnings Cheat Sheet

Results: Net income for D. R. Horton Inc. rose to $100.1 million (30 cents per share) vs. $35.7 million (11 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 18.3% to $1.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: D. R. Horton Inc. beat the mean analyst estimate of 28 cents per share. It beat the average revenue estimate of $1.19 billion.

Quoting Management: Donald R. Horton, Chairman of the Board, said, “Our fiscal 2012 financial results reflect continued improvement in the housing market and in our company’s performance. Our fourth quarter pre-tax income of $99.2 million was our highest in 22 quarters and contributed to our fiscal 2012 pre-tax income of $242.9 million, the highest since fiscal 2006.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.4%, with the biggest boost coming in the second quarter when revenue rose 28% from the year earlier quarter.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the third quarter, by 9 cents in the second quarter, and by 4 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 16 cents a share to 17 cents over the last sixty days. The average estimate for the fiscal year is $2.76 per share, a rise from $2.38 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Gold Set to Benefit from Obama’s Re-Election?

Is Exxon’s Stock Priced Low Enough to Buy?

Here’s How Ford Will Dethrone Toyota