One of the largest homebuilders in the U.S.,
D.R. Horton, Inc
) recently reached a 52-week high of $24.66 on Feb 12, 2013, on
the back of strong first quarter 2013 results.
Estimates for this leading homebuilder have been moving
significantly higher after the release of solid first quarter
2013 results on Jan 29.
D.R. Horton reported net earnings of 20 cents per share in the
first quarter of fiscal 2013 versus 9 cents in the year-ago
quarter. Earnings per share also beat the Zacks Consensus
Estimate of 14 cents by 50%. The 133.3% year-over-year earnings
upsurge was driven by an increase in homebuilding revenues.
Homebuilding revenues climbed 39.0% year over year to $1.23
billion, driven by price increases and double-digit growth in net
sales orders, homes closed and sales order backlog. Reported
revenues beat the Zacks Consensus Estimate of $1.10 billion.
D.R. Horton has been witnessing significant growth in both
volumes and selling prices for the past few quarters. Moreover,
new home orders, backlogs and homes delivered have all increased
in double-digit percentages in fiscal 2012 and now in the first
quarter of fiscal 2013.
D.R. Horton's homes in inventory have also been increasing.
Moreover, the company is leveraging fixed costs while also
increasing production due to stronger demand.
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The company has also provided an optimistic outlook in the
upcoming quarters. In fact, D.R. Horton has outpaced earnings
estimates for four straight quarters in a row with an impressive
average earnings surprise of 72.5%.
The rising demand for new homes has led to a favorable situation
in the housing market, where inventory levels are dropping and
prices are moving up. D.R. Horton is optimistic about the
upcoming quarters in fiscal 2013. The company is well positioned
with its homes under construction, investments in land and
finished lots, strong balance sheet and liquidity.
D.R. Horton carries a Zacks Rank #2 (Buy).
Other stocks worth a look in the industry are
) carrying a Zacks Rank #1 (Strong Buy) and
MDC Holdings Inc.
Ryland Group Inc.
), both carrying Zacks Rank #2 (Buy).