D.R. Horton reports Q3 EPS $3.36, consensus $2.90

Reports Q3 revenue $9.2B, consensus $8.8B. David Auld, Executive Chairman, said, “The D.R. Horton (DHI) team delivered a strong third quarter, highlighted by earnings per diluted share of $3.36. Consolidated pre-tax income for the quarter was $1.4 billion on revenues of $9.2 billion, with a pre-tax profit margin of 14.7%. We leveraged our operational results and strong balance sheet to return $1.3 billion to shareholders through share repurchases and dividends during the quarter, and we have reduced our outstanding share count by 9% from a year ago. Our net sales orders in the third quarter were flat with the prior year quarter and increased 3% sequentially. We closed more homes than the high end of our guidance range, while maintaining a home sales gross margin of 21.8%. Our tenured operators continue to respond to market conditions with discipline to drive traffic and incremental sales, while carefully balancing pace versus price to maximize returns. New home demand continues to be impacted by ongoing affordability constraints and cautious consumer sentiment. We expect our sales incentives to remain elevated and increase further during the fourth quarter, the extent to which will depend on the strength of demand during the remainder of summer, changes in mortgage interest rates and other market conditions. Our strong liquidity, low leverage, experienced operators and national scale provide us with significant financial and operational flexibility. We are well-positioned with our affordable product offerings and flexible lot supply and are focused on maximizing returns in each of our communities. We are maintaining our disciplined approach to capital allocation to enhance the long-term value of D.R. Horton, including consistently returning capital to our shareholders through share repurchases and dividends.”