The 10-second takeaway
For the quarter ended March 31 (Q2), D.R. Horton beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.
Margins improved across the board.
D.R. Horton tallied revenue of $961.2 million. The 13 analysts polled by S&P Capital IQ expected net sales of $859.9 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $751.1 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 $0.13. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. GAAP EPS of $0.13 for Q2 were 44% higher than the prior-year quarter's $0.09 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 17.9%, 180 basis points better than the prior-year quarter. Operating margin was 4.6%, 490 basis points better than the prior-year quarter. Net margin was 4.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $4.13 billion. The average EPS estimate is $0.52.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 560 members out of 1,132 rating the stock outperform, and 572 members rating it underperform. Among 358 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 143 give D.R. Horton a green thumbs-up, and 215 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on D.R. Horton is hold, with an average price target of $16.15.
- Add D.R. Horton to My Watchlist.
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 may not 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.