D. R. Horton Inc.NYSE
Wed, Nov. 30, 12:11 PM
- Those getting mortgages prior to last few weeks were "likely the last" to lock in at historically low rates, says the NAR's Larry Yun following this morning's disappointing Pending Home Sales report.
- That report was for October, but in more current news, mortgage applications dove another 9.4% in the week ended Nov. 25 (seasonally adjusted). They've been on a downward track for a few weeks, with the speed mostly picking up amid the sharp rise in rates since the election.
- Turning to rates, the 10-year Treasury yield is carving out a new 12-month-plus high, up 11 basis points to 2.40%.
- The S&P 500 is flat, but the ITB is down 1.8%, and XHB 1.2%.
- Toll Brothers (TOL -2.1%), Lennar (LEN -3.4%), Pulte (PHM -1.8%), D.R. Horton (DHI -3.8%), M.D.C. Holdings (MDC -2.1%), Taylor Morrison (TMHC -1.5%)
Thu, Nov. 17, 11:43 AM
- This morning's housing starts for October was off the charts - rising 25.5% from September to the fastest pace in nine years. Stripping out the notoriously volatile multifamily starts still leaves single family starts up 10.2% from September.
- Of course, interest rates continue to rise - with the 10-year Treasury yield up another three basis points to 2.26% - but the builders can worry about that another time.
- The S&P 500 is ahead 0.35%, with the homebuilders are outperforming by a mile.
- Toll Brothers (TOL +2.9%), LGI Homes (LGIH +6.2%), Taylor Morrison (TMHC +3.5%), KB Home (KBH +2.4%), Lennar (LEN +2.5%), Hovnanian (HOV +1.4%), Pulte (PHM +2.7%), D.R. Horton (DHI +3.2%), NVR (NVR +1.8%)
Tue, Nov. 8, 7:59 AM
- FQ4 pretax income of $433M up 28% Y/Y; pretax profit margin of 11.6% up 90 basis points; net income of $283.6M or $0.75 per share up 19%.
- Home sales gross margin of 20.5% up 20 bps from Q3, up 60 bps Y/Y.
- Homes closed up 16% to 12,247 in homes, up 19% in value to $3.6B.
- Net sales orders up 3% to 8,744 homes, up 7% in value to $2.6B.
- Quarterly dividend is lifted by 25% to $0.10 per share.
- Fiscal 2017 guidance is reaffirmed: Pretax profit margin of 11.2-11.5%; revenues of $13.4B-$13.8B; homes closed of 43.5K-45.5K; home sales gross margin of 20%.
- Conference call at 10 ET
- DHI -5.5% in very thin premarket action
- D.R. Horton Earnings Center
Tue, Nov. 8, 7:22 AM
Tue, Nov. 8, 6:57 AM
Mon, Nov. 7, 5:30 PM
Tue, Nov. 1, 9:59 AM
- Discussions about homebuilding M&A have been picking up of late, says analyst Will Randow, and he expects the next deal will likely be one public company acquiring another, rather than a smaller private player.
- "Aside from the normal benefits of M&A, we believe larger public builders may be more inclined to acquire the young (i.e. smaller public) given the slower paced recovery environment that exhibits lower pricing power," says Randow, who picks D.R. Horton (NYSE:DHI) as best-positioned to be a buyer.
- Other possible acquirers include: KB Home (NYSE:KBH), Meritage (NYSE:MTH), PulteGroup (NYSE:PHM), Toll Brothers (NYSE:TOL), and TRI Pointe (NYSE:TPH).
- Potential targets: Century Communities (NYSE:CCS), Green Brick Partners (NASDAQ:GRBK), M.D.C. Homes (NYSE:MDC), Meritage (also on the buyer list), New Home (NYSE:NWHM), Taylor Morrison (NYSE:TMHC), UCP, William Lyon (NYSE:WLH).
- Randow's top accretive scenario ... TRI Pointe buying William Lyon.
Tue, Sep. 27, 9:25 AM
- D.R. Horton's (NYSE:DHI) Issuer Default Rating is lifted to BBB- from BB+ at Fitch. The outlook is dropped to Stable from Positive.
- Noted by Fitch is the company's steady capital structure throughout the cycle, including net debt to capitalization levels consistently below 45%.
- There's also the expectation of further moderate improvement in the housing market in 2016 and 2017, not to mention potential market share gains for DHI.
Tue, Sep. 20, 12:25 PM
- Lennar (NYSE:LEN) was initially higher following this morning's earnings beat, but has turned lower by 4.3% amid cautious earnings call comments on margins.
- Also at work is today's housing starts report which showed an unexpected sharp decline from July to August, with single-family starts dropping to a 10-month low.
- ITB -1.4%, XHB -0.9%
- Hovnanian (HOV -0.9%), KB Home (KBH -1.4%), Pulte (PHM -3.2%), D.R. Horton (DHI -1.2%), Toll Brothers (TOL -1.4%), Taylor Morrison (TMHC -2.5%), LGI Homes (LGIH -1.3%)
Mon, Sep. 19, 12:01 PM
- The NAHB Index jumped six points to a one-year high of 65 this month vs. expectations for just a marginal gain.
- "With the inventory of new and existing homes remaining tight, builders are confident that if they can build more homes they can sell them," says NAHB Chief Economist Robert Dietz.
- The Lindsey Group's Peter Boockvar calls this month's print "ebullient," but says the key to sustain things will be the behavior of the first-time homebuyer. We're at a 50-year low in the homeownership rate - will potential first-timers continue to prefer renting? The area most in need of new homes are those priced below $250K (to better compete against renting), but margin issues don't make this a terribly profitable segment for homebuilders.
- ITB +1.9%, XHB +1.5%
- Toll Brothers (TOL +1.4%), PulteGroup (PHM +3.1%), D.R. Horton (DHI +2.5%), Lennar (LEN +2.5%), Hovnanian (HOV +2.4%)
Tue, Sep. 13, 7:29 AM| Tue, Sep. 13, 7:29 AM
Tue, Sep. 6, 7:15 AM
- Wilson Parker Homes operates in Atlanta and Augusta, Georgia, along with Raleigh, NC, Columbia, SC, and Phoenix.
- D.R. Horton (NYSE:DHI) purchased for undisclosed terms, adding 490 lots, 390 homes in inventory, and 300 homes in sales order backlog (most of which are from the Atlanta operation).
- The company also acquired control of about 1,850 lots through options contracts.
- Wilson Parker closed 906 homes in the 12 months ended this June for $201M in revenue. The deal brings DHI's market share in Atlanta to above 20% this year.
Fri, Sep. 2, 2:18 PM
Tue, Jul. 26, 9:15 AM
- The Freedom Homes brand will focus on affordable homes specifically for the active adult buyer, and will initially be offered in Florida, Texas, and Arizona. DHI expects to have Freedom Homes communities open in at least eight markets by the end of fiscal 2016, and in one-third of the company's 78 operating markets by the end of fiscal 2017.
- Most homeowners 55 and older probably continue to prefer "aging in place," but there's no doubt a large and growing number are moving to communities specifically designed for their needs.
Fri, Jul. 22, 11:00 AM
- Citing valuation and a lack of near-term catalysts, Bank of America downgrades D.R. Horton (DHI -1.2%) to Neutral from Buy. The $36 price target remains, and compares to the current $33.95.
- The stock has rallied about 50% from the mid-February market lows.
- Looking at the earnings call transcript, valuation was clearly on the mind of BofA analyst John Lovallo, as he asked if private builders had raised their asking prices as much as public valuations have moved in the last weeks. COO Michael Murray notes a "valuation gap" nearly always exists in initial talks, but his company is in no hurry to make acquisitions.
Thu, Jul. 21, 7:24 AM
- FQ3 net income of $249.8M or $0.66 per share vs. $221.4M and $0.60 one year ago.
- Net sales orders up 13% to 11,714 homes; up 14% in dollars to $3.4B.
- Backlogs up 15% to 14,670 homes; up 17% in value to $4.4B.
- Homebuilding revenue up 9% to $3.1B. Homes closed up 9% to 10,739 homes.
- Pretax profit margin up 40 basis points to 11.7%.
- Conference call at 10 ET
- Previously: D. R. Horton EPS in-line, misses on revenue (July 21)
- DHI -3.4% premarket in very thin action.