D.R. Horton Q2 Earnings – $1.2B Net Income, 24% Increase

D.R. Horton, Inc., America's Builder, has reported its fiscal 2024 second-quarter earnings, with notable increases across various financial metrics compared to the prior year quarter.

Net income increased by 24% to $1.2 billion, with earnings per diluted share rising by 29% to $3.52. Consolidated pre-tax income also surged by 23% to $1.5 billion, resulting in a pre-tax profit margin of 16.8%. The company experienced a 14% increase in consolidated revenues, reaching $9.1 billion. Additionally, homes closed saw a 15% boost to 22,548 homes, amounting to $8.5 billion in value.

Net sales orders rose by 14% to 26,456 homes, with a 17% increase in value to $10.1 billion. Notably, the rental operations generated $33.3 million in pre-tax income on revenues of $371.3 million, with the company selling 1,109 single-family rental homes and 424 multi-family rental units.

The company exhibited strong financial health, with a consolidated cash balance of $3.1 billion and available credit facility capacity of $2.6 billion, totaling $5.7 billion in liquidity. Furthermore, D.R. Horton's return on equity (ROE) for the trailing twelve months ended March 31, 2024, stood at 22.2%, and the homebuilding return on inventory (ROI) was 29.9% for the same period.

In terms of guidance, the company has updated its fiscal 2024 guidance, now expecting consolidated revenues of approximately $36.7 billion to $37.7 billion and homes closed by homebuilding operations of 89,000 homes to 91,000 homes.

D.R. Horton also engaged in shareholder value-enhancing activities, repurchasing 2.7 million shares of common stock for $402.2 million during the second quarter of fiscal 2024. The company's remaining stock repurchase authorization at March 31, 2024, was $901.1 million.

Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $147.0. For more information, read the company's full 8-K submission here.

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