DR Horton, known as America’s Builder, has announced its robust financial results for the third quarter of fiscal 2024. The company reported a 5% increase in net income per diluted share to $4.10, up from $3.90 in the same quarter of the previous year.
Net income for the quarter experienced a modest 1% rise, reaching $1.35 billion compared to $1.34 billion in the third quarter of fiscal 2023. Consolidated revenues also saw an uptick, climbing 2% to $10.0 billion from $9.7 billion in the same quarter last year.
For the nine months ending June 30, 2024, DR Horton reported an 11% increase in net income per diluted share, amounting to $10.43 compared to $9.39 in the same period of fiscal 2023. The company’s net income for this nine-month period rose by 7% to $3.5 billion, up from $3.2 billion in the corresponding period of the previous year. Consolidated revenues for the first nine months of fiscal 2024 increased by 7%, reaching $26.8 billion compared to $25.0 billion in the same period of fiscal 2023.
During the third quarter, DR Horton closed 24,155 homes, a 5% increase from the 22,985 homes closed in the same quarter of fiscal 2023. The value of homes closed also grew by 6% to $9.2 billion.
Net sales orders for the quarter increased by 1% to 23,001 homes, although the sales order value remained flat at $8.7 billion. The company’s rental operations generated $64.2 million in pre-tax income on revenues of $413.7 million.
DR Horton Surpasses EPS and Revenue Expectations in Q3
DR Horton’s performance in the third quarter of fiscal 2024 exceeded market expectations with an EPS of $4.10 and revenue of $10.0 billion, surpassing both EPS and revenue forecasts. This achievement is noteworthy given the economic challenges such as elevated inflation and mortgage interest rates.
The company’s homebuilding revenue for the third quarter increased by 6% to $9.2 billion, driven by a 5% increase in the number of homes closed. The homebuilding segment’s pre-tax income also saw a 7% increase.
However, the company’s rental operations experienced a decline in pre-tax income due to a decrease in the number of single-family rental homes sold.
DR Horton Expects full-year Year Consolidated Revenues to Range Between $36.8 Billion and $37.2 Billion
Based on its performance, DR Horton expects consolidated revenues to range between $36.8 billion and $37.2 billion for the full fiscal year. The company also anticipates closing between 90,000 and 90,500 homes through its homebuilding operations.
DR Horton has updated its guidance for cash flow provided by homebuilding operations, projecting approximately $3.0 billion for fiscal 2024. The company will provide additional guidance for its fourth quarter during its conference call.
Additionally, DR Horton has announced a new share repurchase authorization totaling $4.0 billion, replacing the previous authorization.
Analysis:
DR Horton’s strong financial performance in the third quarter of fiscal 2024 showcases its resilience in the face of economic challenges. The company’s exceeding of market expectations in EPS and revenue indicates its ability to navigate uncertain times successfully. Investors should take note of DR Horton’s positive outlook for the full fiscal year, as it indicates the company’s confidence in its continued financial success.