D.R. Horton Reports Higher Revenue and Earnings

D.R. Horton, a leading homebuilder based in Arlington, Texas, has announced its fiscal fourth-quarter results, showing increased revenue and earnings, driven by its rental unit business.

The company reported a profit of $1.51 billion, or $4.45 per share, for the three months ended Sept. 30, compared with $1.63 billion, or $4.67 per share, during the same period last year. This surpassed the expectations of analysts surveyed by FactSet, who predicted earnings of $3.94 per share.

Revenue also saw a 9% rise to $10.5 billion, exceeding the projected $10.01 billion estimated by analysts.

Despite inflation pressures and higher mortgage rates, Chairman Donald Horton emphasized that there is no dent in demand. The supply of affordable new and existing homes remains limited, resulting in a strong demand for housing.

While homebuilding revenue dropped 6% to $8.8 billion in the fiscal fourth quarter, there was a 1% decrease in homes closed to 22,928. However, net sales orders experienced a significant 39% increase compared to the previous year, and the cancellation rate decreased from 32% to 21%.

D.R. Horton's rental-operations business witnessed a substantial surge in quarterly revenue, from $21.1 million a year ago to $1.4 billion in the current quarter. Additionally, the financial-services unit reported an increase in revenue from $134.2 million to $219.5 million in the same period.