NYSE$DFH

Dream Finders Homes Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported positive momentum with revenue growth, pre-tax income, and earnings per basic share increasing, driven by encouraging net sales and effective management of construction times and inventory turnover.

Dream Finders Homes announced strong Q2 2023 results with a 19% increase in homebuilding revenues to $943 million and a 12% increase in home closings to 1,846. Net income attributable to DFH increased by 10% to $69 million, or $0.70 per basic share. The company updated its full-year guidance to approximately 6,500 home closings.

  • Homebuilding revenues increased 19% to $943 million.
  • Home closings increased 12% to 1,846.
  • Net new orders increased 16% to 1,655.
  • Net income attributable to DFH increased 10% to $69 million, or $0.70 per basic share.

Headline financials

Total Revenue

$945M

Previous: $793M+19.2%
EPS (adj)

$0.65

Previous: $0.60+8.3%
Net New Orders

1.7K

Previous: 1.4K+16.1%
Average Sales Price

$505K

Previous: $463K+8.9%
Cancellation Rate

15.6%

Previous: 21.0%-25.7%
Ending Backlog Homes

5.3K

Previous: 7.2K-26.5%
Ending Backlog Value

$2.5B

Previous: $3.3B-24.2%
Active Communities

220

Previous: 203+8.4%
Capital Expenditures

-$3M

Previous: -$1.92M-56.2%
Free Cash Flow

$65.8M

Previous: $60.7M+8.3%
Net Income

$68.8M

Previous: $62.6M+9.8%
Operating Income

$103M

Previous: $86.1M+19.5%
Gross Profit

$182M

Previous: $158M+15.7%
Cash & Equivalents

$293M

Previous: $84.1M+247.8%
Total Assets

$2.29B

Previous: $2.11B+8.3%
Stock-Based Comp

$4.04M

Previous: $1.88M+115.1%

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$945M

Q2 2023+19.2%vs Q2 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Dream Finders Homes · $943M total across 1 segment · Q2 2023

  • Homebuilding
    $943M+19.2%

Forward guidance

Dream Finders Homes is updating its guidance and now expects approximately 6,500 home closings for the full year 2023 compared to a previous outlook of approximately 6,000 homes.

Tailwinds

  • Improved sales activity year-to-date
  • Housing market continues to assimilate mortgage rates
  • Management is able to release starts and manage the construction cycle more efficiently.

Headwinds

  • Deterioration of general economic conditions
  • Interest rate increases
  • Mortgage availability
  • Governmental restrictions on land development
  • Supply chain challenges

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.2%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+25.2%

Q2 2023

Best reaction

-12.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+0.4%+9.2%
Q4 2025-2.0%-11.8%-29.7%
Q3 2025-8.5%-11.8%-8.5%
Q1 2025-3.6%+0.6%-1.1%
Q4 2024+17.9%+13.9%+12.7%
Q3 2024-1.3%+4.0%+6.8%
Q2 2024-10.5%-13.2%+6.0%
Q1 2024-12.4%-13.7%-20.3%
Q4 2023+11.6%+9.3%+26.6%
Q3 2023+11.7%+13.3%+26.1%
Q2 2023+25.2%+25.6%+23.2%
Q1 2023+2.3%+5.6%+21.4%
Q4 2022-0.3%-0.8%+6.1%
Q3 2022+3.5%-0.6%-7.4%
Q2 2022-2.5%-3.5%-5.4%
Q1 2022-6.4%+1.6%-10.1%
Q4 2021+5.1%-6.3%-21.3%
Q3 2021+2.5%+9.7%+16.2%
Q2 2021-8.7%-13.8%-16.6%
Q1 2021-8.8%-7.7%-15.7%
Q4 2020-7.2%-17.7%-14.1%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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