DR Horton 4Q net income surges, home orders rise
FORT WORTH, Texas (AP) — Homebuilder D.R. Horton said Monday that its fiscal fourth-quarter net income more than doubled as the company closed on more homes and net sales orders climbed. Its fiscal year-end backlog rose to the highest point in five years.
The housing market is showing signs of a sustained recovery. Last week a measure of U.S. home prices reported by real estate data provider CoreLogic climbed the most in six years. And low interest rates are making home purchases attractive, for those who can afford them.
New home sales jumped last month to the highest annual pace in the past two and a half years. Sales of previously occupied homes dipped in September but have risen steadily in the past year.
D.R. Horton Inc. earned $100.1 million, or 30 cents per share, for the period ended Sept. 30, up sharply from $35.7 million, or 11 cents per share, a year ago.
Revenue increased 22 percent to $1.3 billion.
Analysts predicted 28 cents per share on revenue of $1.37 billion, according to FactSet.
Home closings rose 12 percent to 5,575 homes in the quarter, while net sales orders increased 24 percent to 5,276 homes. The backlog of homes under contract at year's end climbed 49 percent to 7,240 homes, and backlog value rose 61 percent to $1.7 billion.
Full-year net income for D.R. Horton jumped to $956.3 million, or $2.77 per share, from $71.6 million, or 23 cents per share, in the prior year.
Annual revenue climbed to $4.24 billion from $3.55 billion.
D.R. Horton operates in 77 markets in 26 states in the East, Midwest, Southeast, South Central, Southwest and West regions. Its shares fell 61 cents, or 3 percent, to $19.99 in midday trading.
Also on Monday, Beazer Homes USA Inc. reported that its fiscal fourth-quarter net loss widened as the company lost $42.4 million on debt extinguishment. New home orders and closings increased.