D.R. Horton Inc.'s Impressive Q4 Results Exceed Expectations

Stock Performance

D.R. Horton Inc.'s stock (DHI) demonstrated strong performance in premarket trading on Tuesday with a 1.3% increase. This positive trajectory follows the company's fantastic fiscal fourth-quarter results, surpassing profit and revenue estimates set by Wall Street analysts.

Boost in Net Sales and Housing Demand

Despite higher mortgage rates and inflationary pressures, D.R. Horton reported a remarkable 39% increase in net sales orders for the quarter, compared to the previous year. The limited availability of new and existing homes at affordable price points, coupled with favorable demographics supporting housing demand, contributed to this impressive growth.

Financial Highlights

D.R. Horton's fourth-quarter net income for the period ending Sept. 30 underwent a slight 6% decline. Nonetheless, the company achieved a net income of $1.5 billion, equivalent to $4.45 per share, effectively surpassing the year-ago quarter earnings of $1.6 billion, or $4.67 per share. This outstanding performance surpassed the FactSet consensus estimate of $3.94 per share.

Additionally, revenue experienced a noteworthy 9% rise, totaling $10.5 billion for the quarter. This figure outperformed the analyst estimate of $10.01 billion.

Promising Future Outlook

Looking ahead, D.R. Horton remains optimistic about its future prospects. The company anticipates revenue between $36 billion and $37 billion for 2024, surpassing the FactSet consensus estimate of $36.1 billion.

Moreover, D.R. Horton accomplished its lowest leverage in company history, ending the year with a leverage rate of 18.3%. This impressive feat positions the company well for future endeavors.

Stock Repurchase Plans

As part of its strategic plans, D.R. Horton intends to repurchase $1.5 billion of its stock in 2024, further highlighting the company's belief in its long-term success.