Stock Monitor: Beazer Homes USA Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 15, 2018 / Active-Investors.com has just released a free earnings report on D.R. Horton, Inc. (NYSE: DHI). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=DHI. D.R. Horton reported its first quarter fiscal 2018 operating and financial results on January 31, 2018. The No.1 US homebuilder outperformed top- and bottom-line expectations and provided guidance for fiscal 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, D.R. Horton's revenue advanced 15% to $3.33 billion compared to $2.90 billion in Q1 FY17. The Company's reported numbers exceeded analysts' expectations of $3.28 billion.
During Q1 FY18, D.R. Horton's pre-tax income increased 23% to $391.2 million compared to $318.1 million in Q1 FY17. The Company's pre-tax profit margin for the reported quarter improved 70 basis points to 11.7% compared to 11.0% in the year earlier quarter, primarily driven by an increase in home sales gross margin.
For Q1 FY18, net income attributable to D.R. Horton was $189.3 million, or $0.49 per diluted share, compared to $206.9 million, or $0.55 per diluted share, in Q1 FY17. The Company's reported quarter results included a one-time non-cash charge to income tax expense of $108.7 million to re-measure the Company's net deferred tax assets, partially offset by a lower effective tax rate, both as a result of the Tax Cuts and Jobs Act enacted into law on December 22, 2017. On adjusted basis, D.R. Horton's earnings totaled $0.77 per share, beating Wall Street's estimates of $0.64 per share.
D.R. Horton's net sales orders jumped 16% to 10,753 homes and 17% in value to $3.2 billion in Q1 FY18 compared to 9,241 homes and $2.8 billion in Q1 FY17. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the reported quarter was 22%, unchanged from the prior year's comparable quarter.
During Q1 FY18, D.R. Horton's homebuilding revenue grew 14% to $3.2 billion from $2.8 billion in Q1 FY17. The Company's homes closed in the reported quarter increased 15% to 10,788 homes compared to 9,404 homes closed in the prior year's corresponding quarter.
D.R. Horton's home sales gross margin in Q1 FY18 was 20.8% compared to 20.3% in Q1 FY17, primarily attributed to lower warranty, litigation and interest costs as a percentage of homebuilding revenues. Homebuilding selling, general, and administrative (SG&A) expense as a percentage of revenues in Q1 FY18 was 9.5%, unchanged from the prior year's same quarter.
D.R. Horton's homes in inventory at December 31, 2017, increased 13% to 27,800 homes compared to 24,500 homes at December 31, 2016. The Company's homebuilding land and lot portfolio at December 31, 2017 consisted of 259,000 lots, of which 49% were owned and 51% were controlled through option contracts, compared to 212,600 lots at December 31, 2016, of which 56% were owned and 44% were controlled through option contracts.
During Q1 FY18, D.R. Horton issued $400 million of 2.55% senior notes due 2020 and repaid $400 million principal amount of its 3.625% senior notes at par prior to their February 2018 maturity. The Company ended the reported quarter with $558.0 million of homebuilding unrestricted cash and a homebuilding debt to total capital ratio of 25.9%.
During Q1 FY18, D.R. Horton paid cash dividends of $47.0 million to its shareholders and repurchased 500,000 shares of its common stock for $25.4 million. The Company's remaining stock repurchase authorization at December 31, 2017, was $174.6 million.
For fiscal 2018, D.R. Horton increased its consolidated pre-tax profit margin of 11.8% to 12.0% compared to prior guidance of 11.5% to 11.7%. The Company is expecting Home sales gross margin in the range of 20% to 21%, and Financial services operating margin of approximately 30%. D.R. Horton is estimating cash flow from operations of at least $700 million, an increase of $200 million from initial guidance primarily due to recent tax legislation
For fiscal 2018, D.R. Horton is projecting consolidated revenues between $15.5 billion and $16.3 billion and Homes closed between 50,500 and 52,500 homes
Stock Performance Snapshot
February 14, 2018 - At Wednesday's closing bell, D.R. Horton's stock rose 1.27%, ending the trading session at $45.42.
Volume traded for the day: 5.38 million shares, which was above the 3-month average volume of 4.51 million shares.
Stock performance in the previous sic-month period - up 23.49%; and past twelve-month period - up 50.85%
After yesterday's close, D.R. Horton's market cap was at $17.26 billion.
Price to Earnings (P/E) ratio was at 16.92.
The stock has a dividend yield of 1.10%.
The stock is part of the Industrial Goods sector, categorized under the Residential Construction industry. This sector was up 1.3% at the end of the session.
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