D.R. Horton (DHI) reported 4Q earnings on Mon 25 Jan 2016 (before open)

** charts before earnings **

 

** charts after earnings **

 

DR Horton beats by $0.01, misses on revs :

• Reports Q1 (Dec) earnings of $0.42 per share, $0.01 better than the Capital IQ Consensus of $0.41; revenues rose 4.8% year/year to $2.36 bln vs the $2.43 bln Capital IQ Consensus. 
• Net sales orders for Q1 increased 9% to 8,064 homes and 12% in value to $2.4 billion, compared to 7,370 homes and $2.1 billion in the prior year quarter. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the first quarter of fiscal 2016 was 23%. Closings +1% to 8061, value +4% to $2.3 bln.
• The Company's sales order backlog of homes under contract at December 31, 2015 increased 15% to 10,665 homes and 16% in value to $3.2 billion, compared to 9,285 homes and $2.7 billion at December 31, 2014.
• Gross margin 19.9% vs. 19-20% guidance.
• Pretax profit margin +40 bps to 10%; pretax income +9% to $241.3 mln.
• "With a sales backlog of 10,665 homes at the end of December, positive sales trends in January and a robust lot supply and inventory of homes available for sale, we are well-positioned for the spring selling season and fiscal 2016. We remain focused on growing our revenues and pre-tax profits at a double-digit annual pace, while generating positive cash flows and improved returns."