- D R Horton Inc (NYSE:DHI) reported second-quarter FY22 sales growth of 24.1% year-on-year to $8 billion, beating the consensus of $7.62 billion.
- Homes closed in the quarter increased 1% Y/Y to 19,828 homes.
- Net sales orders increased 10% Y/Y in value to $9.7 billion on 24,340 homes.
- The company's cancellation rate for the quarter was 16% compared to 15% last year.
- As of March 31, 2022, D R Horton had 59,800 homes in inventory, of which 26,000 were unsold.
- Selling, general and administrative expenses rose 11.8% to $695.1 million.
- The company held $1.69 billion in cash and equivalents as of March 31, 2022.
- EPS of $4.03 beat the analyst consensus of $3.37.
- "Housing market conditions remain strong despite the rise in mortgage rates, as we continue to experience homebuyer demand that exceeds our pace of supply," said Chairman of the board, Donald R. Horton.
- "With 33,900 homes in backlog, 59,800 homes in inventory, a robust lot supply and strong trade and supplier relationships, we are well-positioned to grow our consolidated revenues by more than 25% in fiscal 2022."
- Outlook: D R Horton sees FY22 revenue of $35.3 billion - $36.1 billion (prior view $34.5 billion - $35.5 billion), versus the consensus of $35.28 billion.
- It expects Homes closed to be 88,000 to 90,000 homes.
- Price action: DHI shares are trading higher by 0.15% at $74.30 in pre-market on the last check Tuesday.
