by Bill McBride on 11/12/2012 09:14:00 AM
Monday, November 12, 2012
D.R. Horton continues to see strong sales growth and expect sales to increase in 2013. Beazer is a laggard, but also expects sales to increase next year. I'll have more on the builders in a couple weeks.
From RTTNews.com: D.R. Horton Q4 Profit Climbs, Tops View
Homebuilder D.R. Horton Inc. Monday reported a sharp increase in fourth-quarter profit, that exceeded analysts' view, as the company benefited from continued improvement in housing market ...Quote from Donald R. Horton, Chairman of the Board:
Homebuilding revenues for the quarter climbed 21 percent to $1.3 billion, while analysts estimated $1.35 billion. The company closed 5,575 homes in the period, up 12 percent from a year earlier.
Net sales orders increased 24 percent and value of net sales orders were up 35 percent from the preceding year.
As at September 30, D.R. Horton sales order backlog of homes under contract jumped 49 percent to 7,240 homes and the value of the backlog increased 61 percent to $1.7 billion.
“We are positioned for a strong start to fiscal 2013, with our highest year-end backlog since fiscal 2007. We have continued to see strong sales demand through October and into November. With 13,000 homes in inventory and 60,000 finished lots controlled, we have the home and lot position to continue to grow our market share and meet increasing customer demand. We look forward to continued improvement in our operating metrics and increased profitability in fiscal 2013.”And from MarketWatch: Beazer Homes's loss widens, sales up double-digits
Beazer Homes fiscal fourth-quarter loss widened as the home builder recorded a large debt extinguishment loss that overshadowed a double-digit revenue rise.
Revenue rose 11% to $370.9 million as home construction and land sales climbed. Analysts polled by Thomson Reuters expected a loss of $1.22 a share on $335.1 million in revenue.
The builder's cancellation rate was down at 31.1% from 34.2%. Total home closings were up 17% to 1,608.
New orders rose 10% to 1,110 homes, a rate that is slower than many of the homebuilder's peers. Total backlog units rose 31% from the year-ago quarter.