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D.R. Horton (DHI) Q1 Earnings In-Line, Revenue Miss

D.R. Horton Inc.'sDHI first-quarter fiscal 2016 adjusted earnings of 42 cents per share came in line with the Zacks Consensus Estimate and grew 7.7% from the prior-year figure of 39 cents driven by strong profits and an increase in homebuilding revenues.

DR Horton Inc. - Earnings Surprise | FindTheBest

Total revenue (homebuilding and financial services) of $2.42 billion missed the Zacks Consensus Estimate of $2.45 billion by 1.2%. Nevertheless, the figure increased 5.2% year over year.

Quarter in Details

Homebuilding revenues of $2.36 billion jumped 5% year over year.

Home sales increased 4.5% year over year to $2.34 billion. Land sales contributed $20.2 million to revenues, higher than $12.3 million in the prior-year quarter.

Net orders rose 9% in the first quarter to 8,064 homes as housing demand improved. Value of net orders grew 12% to $2.4 billion.

Home closings were up 1% to 8,061 homes in the reported quarter.

Quarter-end sales order backlog rose 15% to 10,665 homes. Backlog value grew 16% to $3.2 billion. Sales order backlog represents homes under contract but not closed at the end of a certain period.

Consolidated pre-tax income was $214.3 million in the quarter, up 9% year over year.

Dividend

D.R. Horton declared a quarterly cash dividend of 8 cents per common share, which is payable on Feb 17, 2016 to stockholders of record as on Feb 5.

Outlook

D.R. Horton believes it is well positioned to meet the increasing housing demand in the spring selling season as well as in fiscal 2016 on the back of positive sales trends in January, a robust backlog, finished lot supply and a solid inventory of homes available for sale.

Zacks Rank & Stocks to Consider

D.R. Horton carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the construction sector include Beacon Roofing Supply, Inc. BECN , Tecnoglass Inc. TGLS and Sekisui House Ltd. SKHSY . Beacon Roofing Supply and Tecnoglass sport a Zacks Rank #1 (Strong Buy), while Sekisui House Ltd. (SKHSY) carries a Zacks Rank #2 (Buy).

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D R HORTON INC (DHI): Free Stock Analysis Report

BEACON ROOFING (BECN): Free Stock Analysis Report

SEKISUI HSE LTD (SKHSY): Free Stock Analysis Report

TECNOGLASS INC (TGLS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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