Upcoming AWS Coverage on CalAtlantic Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 16, 2016 / Active Wall St. announces its post-earnings coverage on DR Horton Inc. (NYSE: DHI). The company released its financial results for the fourth quarter fiscal 2016 (Q4 FY16) on November 08, 2016. The Home Builder's revenue jumped 18%. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of DR Horton's competitors within the Residential Construction space, CalAtlantic Group, Inc. (NYSE: CAA), announced ON October 26, 2016, results for its third quarter ended September 30, 2016. AWS will be initiating a research report on CalAtlantic Group in the coming days.

Today, AWS is promoting its earnings coverage on DHI; touching on CAA. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=DHI

http://www.activewallst.com/registration-3/?symbol=CAA

Earnings Reviewed

DR Horton reported that pre-tax income for Q4 FY16 increased 28% to $433.0 million compared to $338.8 million in Q4 FY15. The company's net income for the reported quarter increased 19% to $283.6 million, or $0.75 per diluted share, compared to $238.9 million, or $0.64 per diluted share, in Q4 FY15. The company reported adjusted earnings missed analysts' estimates of $0.77 per share. Net income for FY16 increased 18% to $886.3 million, or $2.36 per diluted share, compared to $750.7 million, or $2.03 per diluted share, in FY15.

DR Horton's Homebuilding revenue for Q4 FY16 jumped 18% to $3.74 billion from $3.1 billion in Q4 FY15; revenue topped analysts' forecasts of $3.67 billion. Homes closed, in the reported quarter, climbed 16% to 12,247 homes compared to 10,576 homes in the year ago period. Homebuilding revenue for FY16 advanced 12% to $11.9 billion from $10.6 billion in FY15.

Operational Metrics

During Q4 FY16, the company's pre-tax profit margin improved 90 basis points to 11.6% from 10.7% in Q4 FY15; the improvement in pre-tax profit margin was driven primarily by a 60 basis point increase in the Company's home sales gross margin. Pre-tax profit margin for FY16 improved 70 basis points to 11.1% from 10.4% in fiscal 2015. Home sales gross margin in Q4 FY16 was 20.5% compared to 19.9% in Q4 FY15. Homebuilding SG&A expense as a percentage of homebuilding revenues in Q4 FY16 was 8.8%, flat compared to the comparable year ago quarter.

Net sales orders for the quarter ended September 30, 2016 increased 3% to 8,744 homes from 8,477 homes in the year-ago quarter, and the value of net sales orders increased 7% to $2.6 billion from $2.5 billion. The Company's cancellation rate (cancelled sales orders divided by gross sales orders) was 28% for Q4 FY16. Net sales orders for FY16 increased 9% to 40,814 homes from 37,380 homes in FY15, and the value of net sales orders increased 12% to $12.0 billion from $10.7 billion. The Company's cancellation rate for FY16 was 23%.

The Company's sales order backlog of homes under contract at September 30, 2016, increased 8% to 11,475 homes from 10,662 homes at September 30, 2015. The value of the backlog increased 9% to $3.4 billion at September 30, 2016, from $3.1 billion a year ago.

Financials

DR Horton's homebuilding return on inventory (ROI) improved 260 basis points to 15.4% in fiscal 2016 from 12.8% in FY15. Net cash provided by operations for FY16 was $618.0 million. The Company ended the year with $1.3 billion of homebuilding unrestricted cash and homebuilding debt to total capital of 29.2%. The Company also declared a quarterly cash dividend of $0.10 per common share, an increase of 25% compared to its most recent dividend paid. The dividend is payable on December 12, 2016, to stockholders of record on November 28, 2016.

Guidance

DR Horton reaffirmed its FY17 guidance with the company expecting revenue to be the range of $13.4 billion to $13.8 billion. Consolidated pre-tax margin guidance is estimated in the band of 11.2% to 11.5%. Home closing is likely to be between 43,500 homes and 45,500 homes. The company is expecting cash flow from operations between $300 million and $500 million.

Stock Performance

DR Horton's stock climbed by 1.22%, closing Tuesday's session at $28.31 on volume of 7.14 million shares, which was higher than the 3 months average volume of 4.24 million shares. The company's shares are trading at a PE ratio of 11.99 and have a dividend yield of 1.41%. The stock currently has a market cap of $10.55 billion.

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SOURCE: Active Wall Street