- D R Horton Inc (NYSE:DHI) reported first-quarter FY22 sales growth of 18.9% year-over-year to $7.05 billion, beating the consensus of $6.71 billion.
- Homebuilding revenue rose 17% Y/Y to $6.7 billion. Homes closed in the quarter decreased 2% to 18,396 homes versus 18,739 in 1Q21.
- EPS improved to $3.17 from $2.14 in 1Q21, beating the consensus of $2.79.
- Consolidated pre-tax profit margin improved 380 bps to 21.2%.
- Q1 Net sales orders increased 5% Y/Y to 21,522 homes and 29% in value to $8.3 billion compared to 20,418 homes and $6.4 billion in the same quarter of FY21.
- As of December 31, 2021, the company had 54,800 homes in inventory, of which 25,600 were unsold. About 1,000 of the company's unsold homes were completed.
- The cancellation rate for the quarter was 15%, compared to 18% in the prior-year quarter.
- D R Horton's cash used in operating activities for the quarter was $174.1 million, compared to $252.1 million a year ago.
- During the quarter, D.R. Horton repurchased 2.7 million shares of common stock for $278.2 million; the remaining stock repurchase authorization as of December 31, 2021, was $268 million.
- The company's quarterly cash dividend of $0.225 per common share is payable on February 25, 2022, to stockholders of record on February 17, 2022.
- D R Horton had $2.1 billion of unrestricted homebuilding cash and $2 billion of available capacity on its revolving credit facility at Q1-end.
- FY22 Guidance: D.R. Horton expects consolidated revenues of $34.5 billion - $35.5 billion (prior expectation $32.5 billion - $33.5 billion) vs. consensus of $33.26 billion.
- The company reaffirmed guidance for Homes closed between 90,000 and 92,000 homes.
- Price Action: DHI shares are trading lower by 0.59% at $88.92 on the last check Wednesday.
