Earnings to hit despite soft housing market, FY25 Outlook reiterated
DR Horton, Inc. (NYSE:DHI) shares traded higher after the company. He reported the results of the first quarter.
Sales fell 1 percent year over year to $7.61 billion, beating consensus of $7.08 billion. EPS was $2.61 Winning a deal of $2.44.
Net sales orders fell 1% Y/Y to 17,837 homes and prices fell 2% to $6.7 billion.
Homebuilding revenue declined 2% Y/Y to $7.2 billion. Home closings in the quarter fell 1% Y/Y to 19,059 homes.
In the year As of December 31, 2024, orders for homes under contract fell 21 percent to 11,003 homes and 21 percent in value to $4.3 billion.
Dr. Horton had 36,200 homes in inventory, of which 25,700 were unsold as of December 31, 2024.
Equity return was 19.1% for FY24, and asset return was 13.4%. Operating cash flow stood at $646.7 million in the quarter.
In the year As of December 31, 2024, its cash balance was $3.0 billion, and its leverage under its credit facilities was $3.5 billion, for a total of $6.5 billion in liquidity.
Dr. Horton bought 6.8 million shares worth $1.1 billion during the quarter. The company’s stock buyback authorization as of the end of December was $2.5 billion.
After the end of the year, the company On February 14th, it announced a quarterly dividend of $0.40 a share to shareholders through February 7th, 2025.
FY25 OutlookDr. Horton reiterated revenue of $36.0 billion – $37.5 billion. 37.16 billion dollar deal.
It expects foreclosures to be 90,000 homes -92,000 homes for the year. The operating cash flow of DHI projects in FY25 will be higher than in FY2024.
The company revised its FY25 share buyback estimate to $2.6-$2.8 billion from an earlier estimate of ~$2.4 billion. The company expects a dividend Payments of around 500 million dollars.
David Old“While the level of new and existing housing has risen from historically low levels, the supply of affordable housing remains limited, and the demographics that support housing demand remain favorable,” the executive chairman said.
“Despite continued affordability challenges and competitive market conditions, incentives such as mortgage rate buybacks have helped address affordability and stimulate demand.”
Investors may gain exposure to the stock. iShares US Home Construction ETF (BATS: IBB) and Parnassus Income Funds Parnassus Value Select ETF (NYSE:PRVS)
