D.R. Horton Reports Strong Performance in Q1 2022

D.R. Horton, a leading homebuilder based in Arlington, Texas, has announced higher revenue and earnings for its fiscal first quarter. This positive development can be attributed to the recent cooling off of mortgage rates.

For the three months ended December 31, the company reported a profit of $947.4 million, or $2.82 per share. This is slightly lower than the $958.7 million, or $2.76 per share, recorded during the same period last year. Despite this minor decline, D.R. Horton’s performance exceeded analysts’ expectations, with FactSet estimating earnings of $2.87 per share.

Furthermore, the company recorded a 6% increase in revenue, reaching $7.73 billion. Analysts had predicted revenue of $7.56 billion, making D.R. Horton’s actual performance even more impressive.

Chairman Donald Horton commented on the company’s accomplishments, stating, “Although inflation and mortgage interest rates remain elevated, our net sales orders increased 35% from the prior-year quarter.” He emphasized that the limited supply of new and existing homes at affordable price points, coupled with favorable demographics supporting housing demand, were instrumental in driving the significant increase in sales orders.

D.R. Horton’s homebuilding revenue also saw a notable rise of 8% to $7.3 billion. The number of homes closed also experienced a healthy growth of 12%, reaching a total of 19,340 homes. Importantly, the cancellation rate decreased from 27% in the prior-year quarter to 19%.

The company is optimistic about its future performance and has adjusted its guidance for fiscal year 2024 accordingly. It now predicts revenue between $36 billion and $37.3 billion for that fiscal year, representing an upward adjustment of $300 million at the top end of the range.

D.R. Horton’s strong performance in Q1 2022 demonstrates its ability to thrive in a competitive market, despite challenges such as inflation and mortgage rates. With a positive outlook and a commitment to meeting the demand for affordable homes, the company is well-positioned for continued success.