D.R. Horton's adjusted earnings of $0.39 per share in the first
quarter 2015 beat the Zacks Consensus Estimate by 11.4%. Also,
earnings increased 8.3% year over year as solid homebuilding
revenues. Homebuilding revenues of $2.25 billion increased 38% year
over year backed by higher closings, improving order trends and
pricing gains. The company provided an optimistic outlook for 2015.
The company believes that it is well positioned to meet housing
demand in the upcoming spring selling season, on the back of solid
community count and balance sheet. We are encouraged by the
company's broad geographic footprint, product diversity and strong
land position and steadily improving order trends. However,
increasing cost and limited pricing power is hurting margins across
housing industry. We, therefore, have a Neutral recommendation on
D.R. Horton, Inc., based in Texas, is one of the leading
national homebuilders, primarily engaged in the construction and
sale of single-family houses both in the entry-level and move-up
markets. Homes vary in sizes from 1,000 to 4,000 square feet, with
prices ranging from $100,000 to more than $1,000,000. In fiscal
2014, the company closed 28,670 homes at an average sales price
(ASP) of $272,200.
D.R. Horton operates through two segments: Homebuilding and
Financial Services. The Homebuilding segment comprises six
reporting regions and derives revenues primarily from the sale of
completed homes built on either its self-constructed or acquired
lands. In addition to single-family detached homes, the segment
builds attached homes, such as town homes, duplexes, triplexes and
condominiums. The segment also derives revenues by selling lands
The Financial Services segment, through the mortgage subsidiary,
DHI Mortgage, derives its income from originating and selling
mortgages and collecting fees for title insurance and closing
D.R. Horton's operations are spread over 79 metropolitan markets
in 27 states in the East, Midwest, Southeast, South Central,
Southwest and West regions of the U.S. D.R. Horton's houses are
sold under the brand names D.R. Horton - America's Builder, Emerald
Homes, Express Homes, Regent Homes, Crown Communities and Breland
D.R. Horton, Inc. (DHI): Read the Full Research
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