Jun 30, 2020

D.R. Horton Q3 2020 Earnings Report

Reported record results with a 38% increase in net sales orders and a 25% increase in consolidated pre-tax income.

Key Takeaways

D.R. Horton reported a strong third quarter in fiscal year 2020, marked by significant growth in net sales orders, pre-tax income, and earnings per share. The company's performance reflects its industry-leading market share, broad geographic footprint, and diverse product offerings.

Net income per diluted share increased 37% to $1.72.

Net income attributable to D.R. Horton increased 33% to $630.7 million.

Consolidated revenues increased 10% to $5.4 billion.

Net sales orders increased 38% to 21,519 homes and 35% in value to $6.3 billion.

Total Revenue
$5.39B
Previous year: $4.91B
+9.9%
EPS
$1.72
Previous year: $1.26
+36.5%
Homes Closed
17.64K
Net Sales Orders
21.52K
Cancellation Rate
22%
Gross Profit
$1.31B
Previous year: $1.07B
+21.5%
Cash and Equivalents
$2.35B
Previous year: $864M
+172.3%
Free Cash Flow
$965M
Previous year: $507M
+90.3%
Total Assets
$18B
Previous year: $15.2B
+18.1%

D.R. Horton

D.R. Horton

D.R. Horton Revenue by Segment

Forward Guidance

D.R. Horton plans to maintain a flexible operational and financial position by generating strong cash flows and managing product offerings. The company's strong balance sheet and liquidity provide flexibility to operate effectively through changing economic conditions.

Positive Outlook

  • Generating strong cash flows from homebuilding operations.
  • Managing product offerings to optimize inventory returns.
  • Maintaining a strong balance sheet.
  • Ample liquidity provides operational flexibility.
  • Disciplined approach to investing capital.

Challenges Ahead

  • Uncertainty regarding the extent and duration of COVID-19 impacts.
  • Potential effects on the U.S. economy and employment levels.
  • Possible impacts on capital and secondary mortgage markets.
  • Risk to consumer confidence and demand for homes.
  • Potential issues with mortgage loan availability to homebuyers.