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