Stock Buzz: DR Horton Inc (NYSE:DHI)

DR Horton Inc. (NYSE:DHI) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.52 per share on revenue of $2.77B. Analysts had been modeling earning per share of $0.47 with $2.69B in revenue.


Net income increased 32% to $195.1 million, or $0.52 per diluted share


Pre-tax income increased 31% to $300.5 million


Pre-tax profit margin improved 130 basis points to 10.9%


Net sales orders increased 13% in value to $3.6 billion and 10% in homes to 12,292


Homes closed increased 16% in value to $2.7 billion and 12% in homes to 9,262


Sales order backlog increased 14% in value to $4.1 billion and 12% in homes to 13,695


Net cash provided by operations for the six months ended March 31, 2016 was $26.9 million, compared to net cash used in operations of $168.8 million


Increases fiscal 2016 guidance for consolidated pre-tax profit margin to a range of 10.7% to 11.2%


Reaffirms fiscal 2016 guidance for consolidated revenues of $12.0 billion to $12.5 billion


D.R. Horton, Inc. (DHI), America’s Builder, today reported that net income for its second fiscal quarter ended March 31, 2016 increased 32% to $195.1 million, or $0.52 per diluted share, from $147.9 million, or $0.40 per diluted share, in the same quarter of fiscal 2015. Homebuilding revenue for the second quarter of fiscal 2016 increased 16% to $2.7 billion from $2.3 billion in the same quarter of fiscal 2015. Homes closed in the quarter increased 12% to 9,262 homes, compared to 8,243 homes in the prior year quarter.


DR Horton Inc. earnings per share showed an increasing trend of 39.5% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 267%.Analysts project EPS growth over the next 5 years at 14.3%. It has EPS annual growth over the past 5 fiscal years of 21.4% when sales grew 19.7. It reported 15.4% sales growth, and 30.4% EPS growth in the last quarter.


The stock is trading at $30.56, up 33.4% from 52-week low of $22.97. The stock trades down -7.14% from its peak of $33.1 and 10.44% above the consensus price target of $33.75. Its volume clocked up at 3.92 million shares which is higher than the average volume of 3.71 million shares. Its market capitalization currently stands at $11.34B.

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