D.R. Horton (NYSE:DHI) reports fiscal fourth-quarter earnings on Tuesday. Here's what to expect, from Investing.com:
D.R. Horton expects to deliver a strong performance in the fourth quarter of fiscal 2016 on the back of its robust backlog position and well-stocked inventory of land, lots and homes. The company’s order trends remain solid for the past few quarters, a trend which is expected to continue in the soon-to-be reported quarter. Management expects investments in land and development to increase in the fourth quarter from year-ago levels.
However, the company expects the average sales price of homes closed to be around $2,90,000 in the quarter, which is lower than the third quarter’s closing price. Though the company is seeing better-than-expected demand trends and absorption levels for the lower priced Express brand of homes, the higher proportion of these homes in home closings is hurting selling prices.
That said, despite a slight decrease in active selling communities in the third quarter, net sales orders rose 13% to 11,714 homes on continued improvement in sales. Meanwhile, the higher absorption rates of the affordable Express-branded homes are driving overall sales. Also, in the quarter, orders increased across all the operating regions. The value of net orders grew 14% to $3.4 billion.