Homebuilder D.R. Horton Inc. (DHI: Quote) Friday reported a sharp increase in second-quarter profit, as revenues climbed 49 percent driven by higher home sales volumes and favorable pricing. Both earnings per share and revenues beat analysts' expectations. In pre-market trading, the shares are up about 6 percent.
Donald Horton, chairman of the board stated, "...We are in an excellent position to continue to meet increased sales demand and aggregate market share with 15,800 homes in inventory and 175,000 lots owned or controlled under option contracts, of which 58,000 lots are fully developed."
Homebuilding revenue climbed 49 percent to $1.39 billion, and came above analysts' estimate of $1.26 billion. Homes closed in the quarter increased 33 percent year-over-year to 5,643 homes.
The Fort Worth, Texas-based company said its quarterly net sales orders were up 34 percent from a year ago and totaled 7,879 homes and value surged 52 percent to $2.0 billion. The company's cancellation rate for the second quarter of fiscal 2013 was 19 percent.
Sales order backlog as at March 31, increased 54 percent in homes to 9,553 and 76 percent in value to $2.4 billion.
"Our homes sold, closed and in backlog all increased by greater than 30% compared to the year-ago quarter, while the dollar values increased 52%, 47% and 76%, respectively," Horton said.
For the second quarter, the company posted net income of $111 million or $0.32 per share, sharply higher than $40.6 million or $0.13 per share in the previous year.
On average, 20 analysts polled by Thomson Reuters expected earnings per share of $0.19 for the quarter. Analysts' estimates typically exclude one-time items.
Income before income taxes increased 236 percent to $142.1 million, and pre-tax income margin improved to 9.9 percent.
DHI closed Thursday's regular trading at $24.53 on the NYSE. In the pre-market activity, the shares are up 6.11 percent.
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by RTT Staff Writer
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