D.R. Horton reports Q1 EPS $2.76, consensus $2.26

Reports Q1 revenue $7.26B, consensus $6.4B. Net sales orders for the first quarter ended December 31, 2022 decreased 38% to 13,382 homes and 40% in value to $4.9 billion compared to 21,522 homes and $8.3 billion in the same quarter of the prior year. The company’s cancellation rate for the first quarter of fiscal 2023 was 27% compared to 15% in the prior year quarter. The company’s sales order backlog of homes under contract at December 31, 2022 decreased 46% to 15,759 homes and 44% in value to $6.2 billion compared to 29,347 homes and $11.1 billion at December 31, 2021. Chairman Donald Horton said: "Beginning in June 2022 and continuing through today, we have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty. While these pressures may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable."