D.R. Horton (DHI), the largest home builder by revenue, recently reported impressive numbers for the fourth quarter. The company results were good, but fell shy of meeting consensus estimates on the earnings. The management of the company is confident that the company will perform well in the coming quarters. It is seeing robust growth in the home orders. D.R. Horton also reported a solid improvement in the pre-tax profits.
Quarterly performance and beyond
Horton's quarterly revenue came in at $2.4 billion, up from the $1.8 billion which it posted in the same quarter last year. On the earnings front, Horton posted EPS of $0.45 per share, compared to $0.40 per share in the same quarter last year. But the earnings fell short of analysts estimates of $0.48 per share.
D.R. Horton is among the top home builders in the U.S. The strength of the company can be seen that when the overall home building sector was soft, the company generated a 20% growth, indicating that customers still trust Horton for its services.
But due to weaker than expected results, Horton saw a downfall. However, the company is now focusing on various initiatives to improve its profitability. It is strategically focusing on leveraging its competitive position to generate a double-digit growth in both revenue and pre-tax profits. This is also expected to improve its cash flows driving its growth to a better level and increasing the top line.
Growth-driving factors
On the other hand, Horton is seeing strong growth in profitability due to its branded communities which are responsible for majority of its sales in the last quarter. Horton is pleased with the progress and performance of its Express Homes and Emerald Homes brands. Its Eme
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