The 10-second takeaway
For the quarter ended March 31 (Q2), DR Horton beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
DR Horton booked revenue of $1.43 billion. The 14 analysts polled by S&P Capital IQ hoped for a top line of $1.28 billion on the same basis. GAAP reported sales were 49% higher than the prior-year quarter's $961.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.32 for Q2 were 146% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.7%, 270 basis points better than the prior-year quarter. Operating margin was 9.8%, 510 basis points better than the prior-year quarter. Net margin was 7.8%, 360 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.73 billion. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $6.21 billion. The average EPS estimate is $1.04.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 589 members out of 1,142 rating the stock outperform, and 553 members rating it underperform. Among 297 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 161 give DR Horton a green thumbs-up, and 136 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DR Horton is outperform, with an average price target of $23.98.
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