DHI This huge homebuilder beat on the top and bottom lines.
D. R. Horton (NYSE:DHI): FQ3 GAAP EPS of $3.06 beats by $0.26.
Revenue of $7.3B (+35.4% Y/Y) beats by $130M.
Homes closed increased 22% to 21,588 homes and 35% in value to $7.0 billion.
Net sales orders decreased 17% to 17,952 homes and 2% in value to $6.4 billion.
Sales order backlog of homes under contract at June 30, 2021 increased 39% to 32,209 homes and 57% in value to $11.0 billion compared to 23,205 homes and $7.0 billion at June 30, 2020.
Despite the good news, traders are sending the stock lower in pre-market by about 4%. I presume they are focusing on the slight drop in new orders last quarter. However, DHI has intentionally slowed down orders because they cannot keep up with demand in virtually all of their markets. They explained this in their PR. I expect they will provide more details in their CC this morning. Good times continue to roll for the homebuilders:
“Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across all of our markets. As our top priority is to consistently fulfill our commitments to our homebuyers, we have slowed our home sales pace to more closely align to our current production levels, while building out the infrastructure needed to support a higher level of home starts. We are also selling homes later in the construction cycle when we can better ensure the certainty of the home close date for our homebuyers. After starting 22,600 homes during the quarter, our homes in inventory at June 30, 2021 increased 44% from a year ago to 47,300 homes, positioning us to finish fiscal 2021 strong and produce double-digit volume growth in fiscal 2022.
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