NYSE$DFH

Dream Finders Homes Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Dream Finders Homes reported strong Q3 2022 results with significant growth in homebuilding revenues and net income.

Dream Finders Homes announced impressive results for the third quarter of 2022, marked by a 117% increase in homebuilding revenues to $784 million and a 264% surge in net income to $70 million. The company's strategic land-light operating model and focus on entry-level and first-time move-up buyers have contributed to its success in a challenging housing market.

  • Homebuilding revenues increased by 117% to $784 million.
  • Net income attributable to DFH increased by 264% to $70 million, or $0.71 per basic share.
  • Home closings increased by 68% to 1,542 homes.
  • Active community count increased by 84% to 197 communities.

Headline financials

Total Revenue

$786M

Previous: $363M+116.4%
EPS (adj)

$0.64

Previous: $0.20+220.0%
Net New Orders

1.1K

Previous: 1.3K-14.7%
Average Sales Price

$488K

Previous: $376K+29.9%
Cancellation Rate

25.5%

No prior period
Ending Backlog Homes

6.8K

No prior period
Ending Backlog Value

$3.1B

Previous: $1.8B+72.2%
Active Communities

197

Previous: 107+84.1%
Capital Expenditures

-$4.32M

Previous: -$1.7M-154.9%
Free Cash Flow

$65.3M

Previous: $17.4M+274.5%
Net Income

$69.6M

Previous: $19.1M+263.9%
Operating Income

$70.5M

Previous: $18.6M+279.5%
Gross Profit

$147M

Previous: $59.6M+147.0%
Cash & Equivalents

$124M

Previous: $85.5M+44.6%
Total Assets

$2.29B

Previous: $1.23B+85.6%
Stock-Based Comp

$1.58M

Previous: $1.47M+7.0%

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$786M

Q3 2022+116.4%vs Q3 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Dream Finders Homes · $784M total across 1 segment · Q3 2022

  • Homebuilding
    $784M+117.2%

Forward guidance

Dream Finders Homes reaffirms its guidance of a minimum of 7,000 home closings for the full year 2022, considering the rapid increase in interest rates and the overall moderation of the housing market.

Tailwinds

  • Company anticipates delivering a record fourth quarter in terms of closing volume, revenue and net income.
  • Belief that the national shortage of homes continues.
  • Confident current positioning in the housing universe remains attractive as a destination for entry-level and first-time move-up buyers.
  • Build-for-rent platform is less susceptible to fluctuations in homebuyer demand.
  • Opportunities presented from a market correction will set the Company apart because it truly runs a disciplined 100% land-light strategy.

Headwinds

  • Economy will continue to slow and housing will not be spared.
  • Rapid increase in mortgage rates has resulted in elevated cancellation levels.
  • Market's reaction to the deteriorating economic conditions negatively affected net new orders
  • Hurricane Ian caused a delay in scheduled closings
  • Further deterioration of general economic conditions, including interest rate increases and mortgage availability, could negatively affect the Company’s ability to achieve its number of home closings in 2022.

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 Q3 2022

Historical avgQ3 2022

+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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