D. R. Horton Inc. Earnings: Swing to a Profit, Beating Estimates

S&P 500 (NYSE:SPY) component D. R. Horton Inc. (NYSE:DHI) climbed to a profit in the first quarter and beat Wall Street’s expectations in the process. 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.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

D. R. Horton Earnings Cheat Sheet for the First Quarter

Results: Reported a profit of $27.7 million (9 cents per diluted share) in the quarter. D. R. Horton Inc. had a net loss of $20.4 million or a loss 6 cents per share in the year earlier quarter.

Revenue: Rose 15.5% to $885.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DHI beat the mean analyst estimate of 5 cents per share. Analysts were expecting revenue of $896.9 million.

Quoting Management: Donald R. Horton, Chairman of the Board, said, “We are off to a strong start in fiscal 2012. We were profitable in our first quarter and are focused on being profitable each quarter and for the entire fiscal year. Our net sales orders, homes closed and sales order backlog all increased by double-digit percentages over the prior year quarter. We are looking forward to the spring selling season with cautious optimism. We are positioned for growth, and we remain committed to controlling our construction costs, SG&A and inventory levels while maintaining our strong balance sheet and liquidity.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 14 cents versus a mean estimate of net income of 15 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 7 cents a share to 3 cents over the last ninety days. For the fiscal year, the average estimate has moved down from 52 cents a share to 46 cents over the last ninety days.

Competitors to Watch: PulteGroup, Inc. (NYSE:PHM), KB Home (NYSE:KBH), Lennar Corporation (NYSE:LEN), Toll Brothers, Inc. (NYSE:TOL), The Ryland Group, Inc. (NYSE:RYL), NVR, Inc. (NYSE:NVR), M.D.C. Holdings, Inc. (NYSE:MDC), Standard Pacific Corp. (NYSE:SPF) and Meritage Homes Corporation (NYSE:MTH).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com