The 10-second takeaway
For the quarter ended Dec. 31 (Q1), DR Horton beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share grew.
Margins expanded across the board.
DR Horton notched revenue of $906.6 million. The 13 analysts polled by S&P Capital IQ foresaw a top line of $893.3 million. Sales were 15% higher than the prior-year quarter's $788.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.09. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.05 per share on the same basis. GAAP EPS were $0.12 for Q1 versus -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 16.9%, 130 basis points better than the prior-year quarter. Operating margin was 3.7%, 320 basis points better than the prior-year quarter. Net margin was 3.1%, 570 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $844.3 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $4.07 billion. The average EPS estimate is $0.46.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 556 members out of 1,127 rating the stock outperform, and 572 members rating it underperform. Among 376 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 155 give DR Horton a green thumbs-up, and 221 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 $13.51.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.