Stock Monitor: New Home Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 14, 2018 / If you want access to our free earnings report on D.R. Horton, Inc. (NYSE: DHI), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DHI. The Company reported its second quarter fiscal 2018 operating and financial results on April 26, 2018. The largest US homebuilder outperformed top- and bottom-line expectations. The Company also provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for The New Home Company Inc. (NYSE: NWHM), 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:

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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:

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Earnings Highlights and Summary

For the second quarter of the fiscal year 2018, D.R. Horton's Homebuilding revenues increased 16% to $3.80 billion from $3.25 billion in Q2 FY17. The Company's revenue numbers surpassed analysts' estimates of $3.75 billion.

During Q2 FY18, D.R. Horton's homes closed increased 15% to 12,281 homes compared to 10,685 homes in Q2 FY17. The Company's reported quarter results included $30.1 million of pre-tax inventory and land option charges to cost of sales, of which $24.5 million was related to the settlement of an outstanding dispute associated with a land transaction.

D.R. Horton's net income attributable to common shareholders increased 53% to $351.0 million, or $0.91 per diluted share, in Q2 FY18 compared to $229.2 million, or $0.60 per diluted share, in Q2 FY17. D.R. Horton's earnings beat Wall Street's estimates of $0.86 per share.

Operating Details

During Q2 FY18, D.R. Horton's net sales orders increased 13% to 15,828 homes and 13% in value to $4.7 billion compared to 13,991 homes and $4.2 billion, respectively, in Q2 FY17. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) was 19% in the reported quarter compared to 20% in the prior year's same quarter.

During Q2 FY18, D.R. Horton's backlog conversion rate was 100%. The Company's average closing price was $299,000 in the reported quarter, up 1% from the prior year's comparable quarter.

At March 31, 2018, D.R. Horton's homes in inventory increased 8% to 29,400 homes compared to 27,100 homes at March 31, 2017. The Company's homebuilding land and lot portfolio increased 13% to 257,700 lots at March 31, 2018, of which 48% were owned and 52% were controlled through option contracts, compared to 227,300 lots at March 31, 2017, of which 52% were owned and 48% were controlled through option contracts.

Cash Matters

D.R. Horton ended Q2 FY18 with $528.9 million of homebuilding unrestricted cash and a homebuilding debt to total capital ratio of 24.2%.

During Q2 FY18, D.R. Horton paid cash dividends of $47.1 million, and repurchased 500,000 shares of its common stock for $22.5 million. The Company's remaining stock repurchase authorization was $152.1 million at March 31, 2018.

Guidance

For the full fiscal year 2018, D.R. Horton is forecasting a consolidated pre-tax profit margin of 12.1% to 12.3% compared to the prior guidance of 11.8% to 12.0%. The Company is expecting consolidated revenues between $15.9 billion and $16.3 billion, and homes closed between 51,500 and 52,500 homes. For FY18, D.R. Horton is expecting home sales gross margin to be in the range of 20.5% to 21.0%, and an income tax rate of approximately 25%, excluding the reported quarter non-cash charge to reduce net deferred tax assets as a result of the Tax Act.

For FY18, D.R. Horton is projecting cash flow from operations of at least $800 million, excluding Forestar, an increase of $100 million from the prior guidance due primarily to a higher expected pre-tax profit margin.

Stock Performance Snapshot

May 11, 2018 - At Friday's closing bell, D.R. Horton's stock ended the trading session flat at $43.87.

Volume traded for the day: 2.40 million shares.

Stock performance in the past twelve-month period ? up 31.94%

After last Friday's close, D.R. Horton's market cap was at $16.47 billion.

Price to Earnings (P/E) ratio was at 13.39.

The stock has a dividend yield of 1.14%.

The stock is part of the Industrial Goods sector, categorized under the Industrial Goods industry. This sector was up 0.1% at the end of the session.

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