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D.R. Horton reports 4Q, year-end results that beat expectations

ARLINGTON, Texas (AP) _ D.R. Horton Inc. (DHI) on Tuesday reported fiscal fourth-quarter profit of $829 million.

On a per-share basis, the Arlington, Texas-based company said it had net income of $2.24.

The results surpassed Wall Street expectations. The average estimate of 17 analysts surveyed by Zacks Investment Research was for earnings of $1.76 per share.

The homebuilder posted revenue of $6.4 billion in the period, also exceeding Street forecasts. Seventeen analysts surveyed by Zacks expected $5.88 billion.

For the year, the company reported profit of $2.37 billion, or $6.41 per share. Revenue was reported as $20.31 billion.

D.R. Horton expects full-year revenue in the range of $24 billion to $25 billion.

Donald R. Horton, Chairman of the Board, said, “The D.R. Horton team finished the year strong, highlighted by an 81% increase in net sales orders in the fourth quarter to 23,726 homes, a 60% increase in consolidated pre-tax income to $1.1 billion and a 27% increase in revenues to $6.4 billion. With a record 65,388 homes closed in fiscal 2020, D.R. Horton completed its 19th consecutive year as the largest homebuilder in the United States.

“Over the last five years, we have grown our consolidated revenues by 88% and our earnings per share by 216%, while also generating $5.2 billion of cash flows from homebuilding operations, more than doubling our book value per share, reducing our homebuilding leverage to 17.5% and significantly increasing our returns on inventory and equity to greater than 20%. These results reflect the strength of our experienced teams, industry-leading market share, broad geographic footprint and affordable product offerings across multiple brands.

“We appreciate the continued efforts of our homebuilding and financial services teams who are providing new homes to families across the United States during the ongoing pandemic, and our priority continues to be the health and safety of our employees, customers, trade partners and the communities we serve. We plan to continue to maintain our flexible operational and financial position by generating strong cash flows from our homebuilding operations and managing our product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in each of our communities based on local housing market conditions.

“Our strong balance sheet, liquidity and low leverage provide us with flexibility to operate effectively through changing economic conditions, and we plan to maintain our disciplined approach to investing capital to enhance the long-term value of our company. With 38,000 homes in inventory, an ample supply of lots and continued strong sales trends in October, we are well-positioned for another great year in fiscal 2021.”

D.R. Horton shares have risen 23% since the beginning of the year, while the Standard & Poor’s 500 index has climbed almost 10%. The stock has risen 27% in the last 12 months.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DHI at https://www.zacks.com/ap/DHI

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