Dallas, Texas 04/25/2014 (FINANCIALSTRENDS) – D.R. Horton, Inc. (NYSE:DHI), the Fort Worth head quartered home builder reported spectacular 18 percent increase in its profits for the second quarter, when it reported earnings yesterday before markets opened. The results highlighted the pickup in demand and price for housing in the U.S market in the recent quarters and led to investor frenzy at the markets yesterday. On the back of sustained buying by investors, the share price went up by 8.3 percent at market close yesterday.
Total revenue for 2Q came in at $1.7 billion, as against the $1.39 billion it had reported in 2Q13. Net income in the reporting quarter came in at $131 million, which translated into earnings per share of $0.38 as against the $111 million it had reported in 2Q13. EPS last year same quarter had come in at $0.32. Home sales went up 10 percent in the reporting period as against 2Q13, in tandem with the 10 percent increase in the average sale price, which went up to average of $278,900 per unit. The back log in its order book, which is a crucial indicator of the future health of the business, recorded a solid 5 percent growth, as against 2Q12.
The management team remained bullish of the strong momentum built up in the current quarter, continuing into the 2H of 2014. They have provided guidance that the firm hopes to grow its earnings and revenue in the reminder of the fiscal, which will end on 31st September.
Expressing happiness at the robust showings in the second quarter, Donald J. Tomnitz, who is D.R. Horton, Inc. (NYSE:DHI) Chief Executive Officer, President and Vice Chairman Vice has been quoted to have said that, “Our solid sales performance resulted in an 18% increase in our backlog value compared to the prior year quarter, putting us in a strong position for increased revenue and profitability in the second half of fiscal 2014”.
