DR Horton FY 1Q16 Earnings Call Notes

D.R. Horton (DHI) David Auld on Q1 2016 Results

Positive tone because seeing positive things in the market

“Well, we’ve a positive tone, because we’re seeing positive things happen out in the market. And with the absorptions improvement on the relatively flat community count, less pressure on margins, it was a good first quarter, and what we’re seeing going into January gives us a lot of confidence.”

We feel very good about the market right now

“The resale market is still relatively strong with continuing positive signs, so I mean, our inventory turns are improving, our absorption per flag are improving with stable and in some cases improving margins. So we feel very good about the market right now, and are not seeing other than obviously Houston slow, but the balance of our markets are doing very, very well.”

Texas is as good a market as I’ve seen

“I spent a week drive in Dallas and a week drive in Forth Worth in January. And when I got back I told Horton I had to get out of the field, because if I stayed in Dallas and Forth Worth, I would become way too aggressive buying land. It is as good a market as I’ve seen. ”

Bill W. Wheat

feeling good about what they’re seeing in January

“And Nishu just to share — just a little bit more about January, we’re seeing week-by-week accelerating sales pace as we’d expect to see in January and certainly consistent with typical seasonality and certainly in line with our expectations and our budget. So we’re feeling good about what we’re seeing so far”

Michael J. Murray

Entry level is probably the strongest right now

To the competitive landscape certainly the entry level the lower end of the market is certainly the strongest right now and any time we see that in the market we expect further competition.