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D.R. Horton upbeat after quarterly sales surge

Last updated: 08:23 10 Nov 2015 EST, First published: 03:23 10 Nov 2015 EST

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The sales pipeline is bulging

Home builder D.R. Horton (NYSE:DHI) enjoyed a strong fiscal fourth quarter on the back of rising consumer confidence and continued low mortgage rates.

In the July-September quarter net income surged to US$238.1mln, equivalent to 64 cents per share, from US$166.3mln, or 45 cents a share, in the corresponding period of 2014.

Analysts tracking the stock had penciled in a figure of 62 cents a share.

Pre-tax profit advanced by more than a third to US$338.8mln and the pre-tax margin improved by three-fifths of a percentage point to 10.7%.

Revenue in the quarter crashed through the three billion dollar mark, rising 27.7% to US$3.09bn from US$2.42bn the year before.

Net sales orders were healthy, rising 19% to 8,477 homes while sales orders climbed 22% in value terms to US$2.5bn.

"We are well-positioned with our industry-leading market share, broad geographic footprint and diversified product offerings across our D.R. Horton, Emerald Homes and Express Homes brands,” said Donald Horton, the company’s chairman.

“We are focused on growing our revenues and pre-tax profits at a double-digit annual pace, while continuing to generate positive cash flows and improved returns,” he added.

The quarterly cash dividend was hiked by 28% to eight cents.

“With a sales backlog of 10,662 homes and a robust lot supply and inventory of homes available for sale, we are ready to capitalize on market opportunities to deliver another strong performance in fiscal 2016," the chairman declared.

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