D. R. Horton (DHI) falls 5% after FQ1 EPS miss

D.R. Horton's (NYSE: DHI) first-quarter results showed mixed performance, with earnings per share (EPS) falling short of the average analyst estimate.

FQ1 EPS was $2.82, below the expected $2.87. Despite this, the company reported solid revenue of $7.73 billion, reflecting a 6.5% increase year-over-year, exceeding the estimated $7.56 billion.

The stock fell 5.1% on the news.

Net sales orders demonstrated significant growth at 18,069, a 35% increase YoY, though slightly below the estimated 18,332. Homes closed amounted to $7.28 billion, up 8.5% annually, surpassing the estimated $7.1 billion.

“Although inflation and mortgage interest rates remain elevated, our net sales orders increased 35% from the prior year quarter, as the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable,” Donald R. Horton, Chairman of the Board, said.

However, backlog figures showed declines, with backlog units down 11% and backlog value decreasing by 12% YoY.

D.R. Horton anticipates its FY revenue in the range of $36-37.3 billion, in line with the consensus estimate of $36.64 billion.

“We are well-positioned to meet changing market conditions with our affordable product offerings and flexible lot supply and are focused on turning our inventory to maximize returns and capital efficiency in each of our communities,” added Horton.

By Senad Karaahmetovic

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