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D.R. Horton (NYSE:DHI) stock rose 2.6% in Thursday premarket trading after the company boosted its fiscal year guidance following a strong beat on fiscal Q2 earnings and revenue.
In addition, the homebuilder increased its guidance for stock buybacks by about $100M.
"Although inflation and mortgage interest rates remain elevated, our net sales orders increased 46% from the first quarter and 14% from the prior year quarter, as the supply of both new and existing homes at affordable price points is still limited, and demographics supporting housing demand continue to be favorable," said Chairman Donald R. Horton.
DHI now expects fiscal 2024 revenue of ~$36.7B-$37.7B, compared with its previous range of $36.0B-$37.3B. It increased its guidance for home closings to 89,000-91,000 from the prior outlook of 87,000-90,000. Cash flow from homebuilding operations is still expected to be ~$3.0B. The company increased its anticipated share repurchases to $1.6B from ~$1.5B.
EPS for the quarter ended March 31, 2024, climbed to $3.52, soaring past the $3.05 consensus, from $2.82 in the prior quarter and $2.73 in the year-ago period. Revenue of $9.11B, topping the average analyst estimate of $8.23B, increased from $7.58B in Q1 2024 and $7.97B in Q2 2023.
Q2 homebuilding net sales orders increased to 26,456 homes with a value of $10.1B, compared with 23,142 with a value of $8.6B in the same period a year ago.
The cancellation rate of 15% vs. 19% in Q1 and 18% in Q2 2023.
D.R. Horton's (DHI) homebuilding operations closed on the sale of 22,548 homes in fiscal Q2 2024 vs. 19,340 in Q1 and 19,664 in Q2 2023.
Rental operations produced $33.3M of pretax income on revenue of $371.3M, compared with $31.3M on $195.3M in the prior quarter and $34.6M on $224.1M of revenue in the year-ago period.
The company had 45,000 homes in inventory at March 31, 2024, of which 27,600 were unsold. That compares with 42,600 homes in inventory, of which 28,800 were unsold, at Dec. 31, 2023.
Earlier, D. R. Horton beats top-line and bottom-line estimates; updates FY24 outlook