D.R. Horton profit spiked 33 percent in the three months through June as homebuilding boomed during the coronavirus pandemic.
The Arlington, Texas-based homebuilder booked a fiscal third-quarter profit of $630.7 million, or $1.72 per share, as revenue touched a record with 10 percent growth to $5.4 billion. Wall Street analysts surveyed by Refinitiv were anticipating adjusted earnings of $1.30 a share on revenue of $5.1 billion.
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“Although we experienced a sudden, temporary disruption to our business from the pandemic in mid-March and April, we saw a significant increase in new home demand in May and June, which we were well-positioned for with our affordable product offerings and housing inventories,” said Donald Horton, chairman of the board.
CORONAVIRUS GIVES MILLENNIALS RARE HOME-BUYING OPPORTUNITY
“In these uncertain times, we plan to maintain our flexible operational and financial position by generating strong cash flows from our homebuilding operations and managing our product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on our inventory investments in each of our communities based on local housing market conditions,” he added.
Net sales orders slipped 1 percent in April amid stay-at-home mandates aimed at slowing the spread of COVID-19, but low mortgage rates and limited supply fueled a rush for houses in the final two months of the quarter.
Quarterly sales orders rose 38 percent from a year ago to 21,519 homes, worth a total of $6.3 billion, while closings were up 10 percent at 17,642 units. Meanwhile, cancellations edged up 2 basis points to 22 percent.
D.R. Horton’s sales backlog rose 41 percent to 23,205 homes, worth $7 billion.
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Shares climbed 26 percent year-to-date through Monday, outpacing the S&P 500’s 0.27 percent gain.
View more information: https://www.foxbusiness.com/markets/dr-horton-earnings-coronavirus-q3-2020