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:
Active-Investors.com is currently working on the research report for Beazer Homes USA, Inc. (NYSE: BZH), which also belongs to the Industrial Goods sector as the Company D.R. Horton. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, D.R. Horton most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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.
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email email@example.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visithttp://active-investors.com/legal-disclaimer/.
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.