D.R. Horton (DHI) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this homebuilder have returned -9.8%, compared to the Zacks S&P 500 composite's -2.5% change. During this period, the Zacks Building Products - Home Builders industry, which D.R. Horton falls in, has lost 8.1%. The key question now is: What could be the stock's future direction?While ...

mphillips007 D.R. Horton, Inc. (NYSE:DHI) is an American home construction company. Founded in 1978, D.R. Horton is now a $47 billion (by market cap) homebuilding major that employs over 13,000 people. By volume, D.R. Horton is the largest homebuilder in the United States. The company operates in 119 different markets across 33 states. D.R. Horton has three key tailwinds working in its favor. First, there's a structural imbalance between supply and demand. It's been estimated that the US has a supply defici ...

Otis Worldwide Corporation (OTIS) reported mixed results in first-quarter 2024, wherein its earnings surpassed the Zacks Consensus Estimate but net sales missed the same. The top and bottom lines grew on a year-over-year basis.Its quarterly results reflected 14 consecutive quarters of organic sales growth and the results were marked by a high-teens growth in adjusted earnings per share (EPS). Thanks to the strength in modernization, the company witnessed orders growth of more than 10%, leading to mid-teens ...

NVR, Inc. (NVR) reported impressive first-quarter 2024 results, with earnings and Homebuilding revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was backed by improved demand trends, which resulted in higher order volumes.Shares of this leading homebuilder inched up 0.4% during the trading session on Apr 23, 2024.Inside the NumbersThe company reported earnings of $116.41 per share, which topped the consensus mark of $106.03 by 9.8%. ...

Homebuilding Performance - Homebuilding revenues increased 13% to $8.5 billion compared to $7.5 billion[143] - Homes closed increased 15% to 22,548 homes, while the average closing price decreased 1% to $375,500[143] - Net sales orders increased 14% to 26,456 homes, with the value of net sales orders increasing 17% to $10.1 billion[143] - Homebuilding revenues increased 11% to $15.8 billion compared to $14.2 billion[154] - Homes closed increased 13% to 41,888 homes, while the average closing price decreased 2% to $375,800[154] - Net sales orders increased 22% to 44,525 homes, with a value increase of 24% to $16.9 billion[154] - Home sales revenue for the three months ended March 31, 2024, was $8.5 billion, a 15% increase from $7.4 billion in the prior year period, with 22,548 homes closed compared to 19,664 homes closed previously[174] - Homebuilding revenues in the Southwest region increased by 39% for the three months ended March 31, 2024, primarily due to increases in the number of homes closed[193] - The number of homes closed increased by 15% for the three months ended March 31, 2024, with growth observed in all regions[174] - Homebuilding revenues in the East Region increased by 19% and 15% for the three and six months ended March 31, 2024, respectively, with pre-tax income of $254.5 million and $459.1 million[197] - In the North Region, homebuilding revenues rose by 16% and 15% for the three and six months ended March 31, 2024, respectively, generating pre-tax income of $114.7 million and $200.8 million[198] Financial Performance - Consolidated revenues increased 14% to $9.1 billion compared to $8.0 billion[150] - Net income attributable to D.R. Horton increased 24% to $1.2 billion compared to $942.2 million[150] - Net income attributable to D.R. Horton increased 11% to $2.1 billion, with diluted net income per share up 15% to $6.34[158] - Pre-tax income for the three months ended March 31, 2024, was $1.5 billion, an increase from $1.2 billion in the prior year, representing a 25% growth[222] - Income tax expense for the three months ended March 31, 2024, was $344.8 million, compared to $295.7 million in the prior year, reflecting a 16.6% increase[223] - Net income for the six months ended March 31, 2024, was $1,883.0 million, down from $3,984.2 million for the year ended September 30, 2023, reflecting a decrease of about 52.8%[262] Profitability Metrics - Homebuilding pre-tax income was $1.4 billion compared to $1.1 billion, with a pre-tax margin of 16.0%[143] - Gross profit from home sales increased to $2.0 billion in the three months ended March 31, 2024, with a gross profit margin of 23.2%, up 160 basis points from the prior year[178] - Homebuilding pre-tax income for the six months ended March 31, 2024, was $2.5 billion, representing a 13% increase from $2.2 billion in the prior year[190] - Selling, general and administrative (SG&A) expenses increased by 13% to $614.1 million for the three months ended March 31, 2024, and by 14% to $1.2 billion for the six months ended March 31, 2024[184] Rental and Financial Services - Rental revenues increased 66% to $371.3 million compared to $224.1 million[144] - Financial services revenues increased 18% to $418.2 million, with pre-tax income up 39% to $144.0 million[157] - Forestar's pre-tax income increased 64% to $58.9 million compared to $35.9 million[147] - Total rental revenues increased to $371.3 million and $566.5 million during the three and six months ended March 31, 2024, respectively, compared to $224.1 million and $551.6 million in the prior year periods[205] Inventory and Land Management - Approximately 27,600 homes in inventory were unsold at March 31, 2024, with 7,300 of those homes completed[204] - The company managed its inventory of owned land and lots relative to demand, actively controlling the number of unsold, completed homes[201] - The total remaining purchase price of lots controlled through land and lot purchase contracts was $23.1 billion at March 31, 2024, compared to $21.1 billion at September 30, 2023[204] - As of March 31, 2024, the company had $8.8 million of land held for sale, expected to be sold within the next twelve months[181] Debt and Cash Management - Cash and cash equivalents for the homebuilding segment totaled $2.2 billion at March 31, 2024[230] - The ratio of debt to total capital was 20.0% at March 31, 2024, compared to 18.3% at September 30, 2023[227] - The company had $2.1 billion principal amount of homebuilding senior notes outstanding, maturing from October 2024 through October 2027[233] - Cash decreased to $2,115.6 million as of March 31, 2024, from $2,848.3 million as of September 30, 2023, a decline of about 25.7%[261] Risk Management and Compliance - The company has not experienced any significant changes in its internal controls over financial reporting during the quarter ended March 31, 2024[277] - The company is involved in lawsuits and contingencies but does not expect these to have a material adverse effect on its financial position[280] - A Consent Decree related to stormwater compliance was issued on April 8, 2024, with costs not expected to exceed $1 million[281] - The company manages interest rate risk through forward sales of mortgage-backed securities, which are classified as hedging instruments[271]

Although current expectations indicate that U.S. interest rates may not decrease significantly soon, there’s skepticism about maintaining high rates over an extended period. If interest rates eventually decrease, financing for new homes would become cheaper, stimulating demand for home purchases and, thus, homebuilder stocks.While inflation remains a concern, prolonged high interest rates could elevate inflation as businesses and consumers adjust expectations and spending accordingly.If your rent goes up du ...

D.R. Horton just delivered a rock-solid earnings report. Here's why the stock can keep moving higher.For those hoping for relief on the mortgage rate front, Fed Chair Jerome Powell had some bad news earlier this week.Powell, who had said in March that the central bank was still on track for three rate cuts this year, warned that inflation was not coming down as expected. He said that "Recent data have clearly not given us greater confidence" that inflation is coming down, and hinted once again that rates wo ...

Core Insights - D.R. Horton, Inc. (DHI) reported strong second-quarter fiscal 2024 results, with earnings and revenues exceeding expectations, leading to a 5% increase in shares during pre-market trading [1][2] Earnings, Revenues & Margin Discussion - Adjusted earnings were $3.52 per share, surpassing the Zacks Consensus Estimate of $3.08 by 14.3% and increasing 28.9% year-over-year from $2.73 [2] - Total revenues reached $9.12 billion, a 14% year-over-year increase, exceeding the consensus estimate of $8.27 billion by 10.2% [2] - The consolidated pre-tax profit margin for the quarter was 16.8% [2] Segment Details - Homebuilding revenues amounted to $8.5 billion, up 13% from the prior year, with home sales at $8.47 billion, reflecting a 13.7% increase [3] - Home closings rose 15% year-over-year to 22,548 homes, while net sales orders increased 14% to 26,456 homes, with the value of net orders up 17% to $10.1 billion [3] - The cancellation rate on gross sales orders decreased to 15% from 18% a year ago [3] - The order backlog at the end of the quarter was 17,873 homes, down 7% year-over-year, with a backlog value of $7 billion, down 5% [3] - Financial Services revenues increased 4.3% to $225.6 million, while Forestar contributed $333.8 million in revenues, up from $301.5 million a year ago [3][4] Balance Sheet Details - Cash, cash equivalents, and restricted cash totaled $3.06 billion as of March 31, 2024, down from $3.87 billion at the end of fiscal 2023 [5] - Total homebuilding liquidity was $5.7 billion, with debt totaling $5.9 billion and a debt to total capital ratio of 20% [5] - The trailing 12-month return on equity was 22.2% [5] Share Repurchase and Future Outlook - D.R. Horton repurchased 2.7 million shares for $402.2 million during the quarter, with remaining stock repurchase authorization of $901.1 million as of March 31, 2024 [6] - The company raised its fiscal 2024 revenue guidance to $36.7-$37.7 billion, up from $36-$37.3 billion, and expects homes closed to be between 89,000-91,000 units [7]

D.R. Horton, Inc. (NYSE:DHI) Q2 2024 Earnings Conference Call April 18, 2024 8:30 AM ET Company Participants Jessica Hansen - Senior Vice President, Investor Relations and Communications Paul Romanowski - President and Chief Executive Officer Michael Murray - Executive Vice President and Chief Operating Officer Bill Wheat - Executive Vice President and Chief Financial Officer Conference Call Participants Carl Reichardt - BTIG John Lovallo - UBS Stephen Kim - Evercore ISI Matthew Bouley - Barclays Michael Re ...

Pre-market futures are positive across the board at this hour. We do see some discrepancies, depending on the index, particularly after this mornings earnings reports and economic prints have hit the tape: the Dow has moved from +50 points to +70, the Nasdaq has gone from +40 points to +25, and the S&P 500 has remained steady at +5 points so far in early trading. So far this week, all three indices are in the red over the past month — as of this past weekend.Initial Jobless Claims remain the steadiest of al ...