Homebuilders all strong today after an excellent report from DHI, the industry giant -
briefing -
D.R. Horton beats by $0.31, beats on revs; guides FY22 revs above consensus; Q4 homes closed ahead of guidance; demand exceeding its current capacity to deliver homes; experiencing significant disruptions in its supply chain (92.72 ) :
Reports Q4 (Sep) earnings of $3.70 per share, $0.31 better than the S&P Capital IQ Consensus of $3.39; revenues rose 26.7% year/year to $8.11 bln vs the $7.77 bln S&P Capital IQ Consensus.
Homes closed in the quarter increased 8% to 21,937 homes compared to 20,248 homes closed in the same quarter of fiscal 2020 (guidance called for 21,300-21,700 homes closed).
Net sales orders for the fourth quarter ended September 30, 2021 decreased 33% to 15,949 homes and 17% in value to $6.0 billion compared to 23,726 homes and $7.3 billion in the same quarter of fiscal 2020. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) for the fourth quarter of fiscal 2021 was 19%, unchanged from the prior year quarter.
At September 30, 2021, the Company had 47,800 homes in inventory, of which 21,700 were unsold. 900 of the Company's unsold homes at September 30, 2021 were completed. The Company's homebuilding land and lot portfolio totaled 530,300 lots at the end of the year, of which 24% were owned and 76% were controlled through land purchase contracts.
"Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across most of our markets. We have continued to experience significant disruptions in our supply chain, including shortages and delivery delays in certain building materials along with tightness in the labor market. Consequently, in the fourth quarter, we continued intentionally restricting our home sales pace by selling homes later in the construction cycle to align with our production levels and better ensure the certainty of home close dates for our homebuyers. Currently, we are still restricting the pace of our sales orders during our first fiscal quarter, but to a lesser extent than during our fourth quarter."
Co issues upside guidance for FY22, sees FY22 revs of $32.5-33.5 bln vs. $32.24 bln S&P Capital IQ Consensus. Co sees FY22 homes closed between 90,000 homes and 92,000 homes
