D.R. Horton Rides the Housing Boom
For 19 consecutive years, D.R. Horton (NYSE: DHI) has maintained its position atop the summit of the American homebuilding industry. Since its founding in 1978, the company has seen few environments as operationally tricky as the COVID-19 pandemic, with economic shutdowns imposing unprecedented uncertainty. The company bolstered its balance sheet in preparation for hard financial times that never came, instead delivering accelerated earnings growth. A record single-family housing shortage stands to boost the company's earnings further, representing a growth opportunity in a stock market that's at all-time highs.
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D.R. Horton withdrew guidance to investors after the second fiscal quarter ended March 31, 2020, citing the uncertain and unpredictable nature of the pandemic on its operations. Restrictive stay-at-home orders led to falling demand and sales cancellations in late March and early April, with the company raising $1.2 billion to shore up its financial position.
Source Fool.com
