NYSE$DFH

Dream Finders Homes Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported an increase in homebuilding revenues and home closings, with a return on participating equity of 38.9%.

Dream Finders Homes reported a positive third quarter with a 14% increase in homebuilding revenues to $894 million and a 17% increase in home closings to 1,798. Net new orders increased by 38% to 1,535. The company's net income attributable to DFH increased by 9% to $76 million, or $0.79 per basic share.

  • Homebuilding revenues increased 14% to $894 million.
  • Home closings increased 17% to 1,798.
  • Net new orders increased 38% to 1,535.
  • Net income attributable to DFH increased 9% to $76 million, or $0.79 per basic share.

Headline financials

Total Revenue

$896M

Previous: $786M+14.0%
EPS (adj)

$0.75

Previous: $0.64+17.2%
Net New Orders

1.5K

Previous: 1.1K+38.3%
Average Sales Price

$502K

Previous: $488K+2.8%
Cancellation Rate

14.9%

Previous: 25.5%-41.6%
Ending Backlog Homes

5.0K

Previous: 6.8K-25.6%
Ending Backlog Value

$2.4B

Previous: $3.1B-22.6%
Active Communities

219

Previous: 197+11.2%
Capital Expenditures

-$3.91M

Previous: -$4.32M+9.6%
Free Cash Flow

$72.2M

Previous: $65.3M+10.5%
Net Income

$76.1M

Previous: $69.6M+9.3%
Operating Income

$100M

Previous: $70.5M+42.3%
Gross Profit

$187M

Previous: $147M+26.7%
Cash & Equivalents

$330M

Previous: $124M+166.9%
Total Assets

$2.38B

Previous: $2.29B+4.2%
Stock-Based Comp

$3.81M

Previous: $1.58M+142.0%

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$896M

Q3 2023+14%vs Q3 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 6,750 home closings for the full year 2023 compared to a previous outlook of approximately 6,500 homes.

Tailwinds

  • Company expects approximately 6,750 home closings for the full year 2023.
  • Team did an excellent job making sure we were prepared for this opportunity.
  • The company continued to de-lever the balance sheet to a net debt to net capitalization ratio of 34.5%, the lowest in Company history.
  • The company generated record operating cash flows of $408 million over the trailing twelve months.
  • Total available liquidity of $564 million.

Headwinds

  • Uncertainty remains for the remainder of 2023 and beyond.
  • Deterioration of general economic conditions could negatively affect the Company’s ability to achieve this number of home closings in 2023.
  • Interest rate increases could negatively affect the Company’s ability to achieve this number of home closings in 2023.
  • Mortgage availability could negatively affect the Company’s ability to achieve this number of home closings in 2023.
  • Supply chain challenges could negatively affect the Company’s ability to achieve this number of home closings in 2023.

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 2023

Historical avgQ3 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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