DHI Earnings: D.R. Horton Jumps on Robust Q2 Performance
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DHI Earnings: D.R. Horton Jumps on Robust Q2 Performance

Story Highlights

D.R. Horton delivered impressive numbers for the second quarter despite the current macroeconomic environment of inflation and elevated interest rates.

D.R. Horton (NYSE:DHI) shares jumped by nearly 3% in the early trading session today after the homebuilding company posted robust second-quarter results.

DHI’s Strong Performance

Revenue surged by 14% year-over-year to $9.1 billion, surpassing estimates by $960 million. The EPS of $3.52 comfortably exceeded expectations by $0.45, marking a 29% increase in the company’s bottom line.

Despite inflation and elevated interest rates, DHI’s net sales orders surged by 46% sequentially and by 14% year-over-year to reach 26,456 homes. The company closed 22,548 homes valued at $8.5 billion in Q2. Additionally, the cancellation rate decreased to 15% from 18% in the year-ago period. However, its sales order backlog, representing homes under contract, decreased by 7% to 17,873 homes at the end of March 2024.

Moreover, DHI’s revenue from rental operations soared to $371.3 million from $224.1 million a year ago.

Separately, DHI has announced a quarterly cash dividend of $0.30 per share. The DHI dividend is payable on May 9 to investors of record on May 2.

DHI’s Future Outlook

For Fiscal year 2024, DHI expects its top line to hover between $36.7 billion and $37.7 billion. It also anticipates closing between 89,000 and 91,000 homes during this period.

Is DHI a Good Investment?

Today’s price gains come on top of a nearly 43% jump in D.R. Horton’s share price over the past six months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average DHI price target of $167.09. However, analysts’ views on the company could see changes following today’s earnings report.

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