DR Horton Inc (NYSE:DHI) stock fell 0.16% (As on January 21, 11:38:00 AM UTC-4, Source: Google Finance) after the company reported fiscal first-quarter earnings that fell, but stayed well above expectations as housing demand remained strong despite continued affordability challenges. Net income attributable to D.R. Horton in the first quarter of fiscal 2025 decreased 11% to $844.9 million compared to $947.4 million in the same quarter of fiscal 2024. The Company’s return on equity (ROE) was 19.1% for the trailing twelve months ended December 31, 2024, and return on assets (ROA) was 13.4% for the same period. During the three months ended December 31, 2024, net cash provided by operations was $646.7 million. The Company’s consolidated cash balance at December 31, 2024 was $3.0 billion and available capacity on its credit facilities was $3.5 billion, for total liquidity of $6.5 billion. Debt at December 31, 2024 totaled $5.1 billion, with $500 million of senior notes maturing in the next twelve months. The Company’s debt to total capital ratio at December 31, 2024 was 17.0%. Debt to total capital ratio consists of notes payable divided by stockholders’ equity plus notes payable.
Meanwhile, although the level of new and existing home inventories has increased from historically low levels, the supply of homes at affordable price points is generally still limited, and demographics supporting housing demand remain favorable. Despite continued affordability challenges and competitive market conditions, incentives such as mortgage rate buydowns have helped to address affordability and spur demand.
Moreover, Homebuilding revenue for the first quarter of fiscal 2025 decreased 2% to $7.2 billion compared to $7.3 billion in the same quarter of fiscal 2024. Homes closed in the quarter decreased 1% to 19,059 homes compared to 19,340 homes closed in the same quarter of fiscal 2024. Net sales orders for the first quarter ended December 31, 2024 decreased 1% to 17,837 homes and 2% in value to $6.7 billion compared to 18,069 homes and $6.8 billion in the same quarter of fiscal 2024.
DHI in the first quarter of FY 25 has reported the adjusted earnings per share of $2.61, beating the analysts’ estimates for the adjusted earnings per share of $2.35, according to analysts polled by FactSet. The company had reported the adjusted revenue decline of 1 percent to $7.61 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $7.01 billion.
D.R. Horton said it continues to expect fiscal 2025 consolidated revenue of roughly $36 billion to $37.5 billion. Analysts polled by FactSet expect $36.80 billion.