Core Insights - D.R. Horton, Inc. reported fourth-quarter fiscal 2024 results that missed earnings and revenue expectations, leading to an 11.7% drop in share price following the earnings release [1][2][4] Financial Performance - Adjusted earnings were $3.92 per share, falling short of the Zacks Consensus Estimate of $4.20 by 6.7% and down 11.9% year-over-year from $4.45 [4] - Total revenues amounted to $10 billion, a decrease of 4.8% year-over-year, and below the analysts' expectation of $10.2 billion [4] - The consolidated pre-tax profit margin was 17.1%, down from 19.2% a year ago [5] Segment Performance - Homebuilding revenues reached $8.95 billion, up 1.8% from the prior-year quarter, with home sales at $8.93 billion, an increase of 1.7% [6] - Home closings rose 3% year-over-year to 23,647 homes, while net sales orders increased by 0.5% to 19,035 homes [6] - The value of net orders decreased to $7.15 billion from $7.25 billion year-over-year, with a cancellation rate of 21%, unchanged from the previous year [6] Backlog and Inventory - The order backlog at the end of fiscal 2024 was 12,180 homes, down 20% year-over-year, with a backlog value of $4.8 billion, a 19% decrease [7] - D.R. Horton had 37,400 homes in inventory, with 25,700 unsold, and a land and lot portfolio totaling 632,900 lots [12] Fiscal Year Highlights - For fiscal 2024, total revenues grew 4% to $36.8 billion, driven by a 7% increase in home sales revenues to $33.9 billion [9] - Homes closed increased by 8% to 89,690 homes compared to fiscal 2023 [9] - The homebuilding pre-tax margin for fiscal 2024 was 16.1%, contracting by 50 basis points from fiscal 2023 [10] Balance Sheet and Liquidity - Cash, cash equivalents, and restricted cash totaled $4.54 billion as of September 30, 2024, up from $3.9 billion at the end of fiscal 2023 [11] - Total liquidity was reported at $7.6 billion, with $3.1 billion available on the revolving credit facility [11] Shareholder Returns - D.R. Horton increased its quarterly dividend by 33% to 40 cents per share, reflecting a commitment to disciplined capital allocation [3] - The company repurchased 3.4 million shares for $561.2 million in the fourth quarter, with a remaining stock repurchase authorization of $3.6 billion [13] Fiscal 2025 Guidance - D.R. Horton expects consolidated revenues between $36 billion and $37.5 billion for fiscal 2025, below the consensus estimate of $39.5 billion [14] - Homes closed are anticipated to be between 90,000 and 92,000 units [14]

Core Insights - D.R. Horton Inc (NYSE:DHI) reported disappointing fiscal fourth-quarter results and full-year guidance, primarily due to demand pressure, with earnings of $3.92 per share missing analyst estimates of $4.17 and revenue of $10 billion falling short of expectations of $10.22 billion [1] Stock Performance - DHI's stock is down 9.2% to $163.83, marking its largest single-day percentage drop since March 2020, and is trading at its lowest levels since mid-July, significantly below its record high of $199.85 from September 19 [2] - Despite the recent decline, the stock is still holding onto a roughly 6% gain since the start of the year [2] Options Activity - DHI is on the short sell restricted (SSR) list amid volatility, with options volume reaching eight times its typical level for the day, indicating heightened trading activity [3] - Call options are favored, with 17,000 calls traded compared to 8,541 puts, and the November 165 call and weekly 11/1 167.50-strike call are the most popular contracts [3] - The 50-day call/put volume ratio of 1.39 at major exchanges indicates a strong preference for calls, ranking higher than 94% of readings from the past year [4]

Core Insights - D.R. Horton shares fell 12% following disappointing fourth-quarter results and a weak outlook for fiscal 2025 [1][2][4] Financial Performance - For the fourth quarter of fiscal 2024, D.R. Horton reported revenue of $10.00 billion, a decrease from $10.50 billion year-over-year and below the consensus estimate of $10.22 billion [2][3] - The company reported net income of $1.28 billion, down from $1.51 billion, and below the expected $1.37 billion [3] Future Outlook - D.R. Horton projected fiscal 2025 revenue between $36 billion and $37.5 billion, significantly lower than the $39.39 billion expectation from analysts [3] - Executive chairman David Auld noted that potential homebuyers are holding out for lower mortgage rates, impacting sales [4]

Core Insights - D.R. Horton reported a revenue of $10 billion for the quarter ended September 2024, reflecting a 4.8% decline year-over-year and a surprise of -2.43% compared to the Zacks Consensus Estimate of $10.25 billion [1] - The earnings per share (EPS) was $3.92, down from $4.45 in the same quarter last year, with an EPS surprise of -6.67% against the consensus estimate of $4.20 [1] Financial Performance Metrics - Homes Closed: 23,647, below the analyst average estimate of 24,301 [3] - Net Sales Order - Homes Sold: 19,035, compared to the analyst average estimate of 20,333 [3] - Sales Order Backlog - Homes in Backlog: 12,180, versus the analyst average estimate of 12,899 [3] - Sales Order Backlog - Value: $4.77 billion, below the analyst average estimate of $5.11 billion [3] - Net Sales Order - Value: $7.15 billion, compared to the average estimate of $7.71 billion [3] - Revenues from Home Sales - Homebuilding: $8.93 billion, below the analyst estimate of $9.28 billion, representing a +1.7% change year-over-year [3] - Revenues from Financial Services: $222 million, below the analyst estimate of $242.77 million, with a +1.1% change year-over-year [3] - Revenues from Rental: $704.80 million, exceeding the analyst estimate of $592.24 million, but reflecting a -49.2% change year-over-year [3] - Revenues from Homebuilding: $8.95 billion, below the analyst estimate of $9.31 billion, with a +1.8% change year-over-year [3] - Revenues from Land/Lot Sales and Other - Homebuilding: $20.70 million, exceeding the analyst estimate of $16.82 million, representing a +21.1% change year-over-year [3] - Revenues from Forestar: $551.40 million, above the analyst estimate of $481.54 million, with a +0.3% change year-over-year [3] - Revenues from Eliminations and Other: -$425.70 million, worse than the analyst estimate of -$386.99 million, reflecting a -5% change year-over-year [3] Stock Performance - D.R. Horton shares have returned -5.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.7% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

Core Viewpoint - D.R. Horton reported quarterly earnings of $3.92 per share, missing the Zacks Consensus Estimate of $4.20 per share, and showing a decline from $4.45 per share a year ago, indicating an earnings surprise of -6.67% [1][2] Financial Performance - The company posted revenues of $10 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.43%, and down from $10.5 billion year-over-year [2] - Over the last four quarters, D.R. Horton has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - D.R. Horton shares have increased by approximately 18.7% since the beginning of the year, compared to the S&P 500's gain of 22.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.03 on revenues of $8.02 billion, and for the current fiscal year, it is $15.97 on revenues of $39.51 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock movements [6] Industry Context - The Building Products - Home Builders industry is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of D.R. Horton may be influenced by the overall industry outlook, as higher-ranked industries tend to outperform lower-ranked ones significantly [8]

Core Viewpoint - D.R. Horton Inc. is expected to report its fourth-quarter fiscal 2024 results on October 29, with earnings and revenues anticipated to show a decline compared to the previous year, despite a history of better-than-expected earnings in recent quarters [1][2][3]. Financial Performance - In the last reported quarter, D.R. Horton exceeded the Zacks Consensus Estimate for earnings and revenues by 7.9% and 2.9%, respectively, with earnings and revenues growing 5% and 2% year-over-year [1][2]. - The Zacks Consensus Estimate for the upcoming quarter's earnings per share (EPS) is $4.20, reflecting a 5.6% decrease from the year-ago EPS of $4.45. Revenue is estimated at $10.25 billion, indicating a 2.4% year-over-year decline [3]. Revenue Breakdown - Total revenues for the fiscal fourth quarter are projected to be between $10 billion and $10.4 billion, down from $10.5 billion a year ago. The Homebuilding segment is expected to see a revenue increase due to a higher number of homes closed, while the Forestar and Rental Property segments may experience weakness [4][5]. - Homebuilding revenues are predicted to grow 5.5% year-over-year to $9.28 billion, with an expected average selling price (ASP) of homes closed at $380,400, down 0.7% year-over-year [6]. Segment Performance - Financial Services revenues are expected to reach $239.7 million, a 9.2% increase from the previous year, while Rental Property revenues are projected to decline by 50.6% to $685.8 million, and Forestar revenues are expected to decrease by 18.4% to $448.3 million [7]. Margin Expectations - Higher costs for land, labor, and materials are anticipated to impact margins, with home sales gross margin expected to contract to 24% from 25.1% a year ago. Selling, general and administrative (SG&A) expenses as a percentage of revenues are expected to rise to approximately 7% [8][9]. Order and Backlog Insights - Net sales orders are projected to increase by 14.5% year-over-year to 21,692 units, while the backlog is expected to decrease to 14,131 units, down from 15,197 units a year ago, with a backlog value of $5.54 billion [10]. Earnings Prediction - The model does not predict an earnings beat for D.R. Horton in the upcoming quarter, as the company has an Earnings ESP of -0.42% and a Zacks Rank of 4 (Sell) [11][12].

Core Insights - Analysts project D.R. Horton (DHI) will report quarterly earnings of $4.16 per share, a decline of 6.5% year over year, with revenues expected to reach $10.25 billion, down 2.4% from the same quarter last year [1] Revenue Estimates - Estimated 'Revenues- Home sales- Homebuilding' is projected at $9.28 billion, indicating a year-over-year increase of 5.7% [2] - 'Revenues- Financial Services' is forecasted to reach $242.77 million, reflecting a year-over-year growth of 10.6% [2] - 'Revenues- Rental' is expected to be $592.24 million, showing a significant decline of 57.3% from the prior-year quarter [2] Homebuilding Metrics - The consensus estimate for 'Revenues- Homebuilding' stands at $9.31 billion, representing a 5.8% increase from the year-ago quarter [3] - 'Homes Closed' is predicted to reach 24,301, up from 22,928 in the same quarter last year [3] - 'Net sales order - Homes sold' is estimated at 20,333, compared to 18,939 from the previous year [3] - 'Sales order backlog - Value' is projected to be $5.11 billion, down from $5.92 billion in the same quarter last year [3] - 'Net sales order - Value' is expected to arrive at $7.71 billion, compared to $7.25 billion in the same quarter last year [3] Sales Order Backlog - 'Sales order backlog - Homes in backlog - Northwest' is estimated at 613, up from 547 year-over-year [4] - 'Sales order backlog - Homes in backlog - North' is expected to be 1,627, compared to 1,458 last year [4] - 'Sales order backlog - Value - Northwest' is projected to reach $325.86 million, up from $278.10 million year-over-year [4] - 'Sales order backlog - Value - North' is expected to be $715.37 million, compared to $617.70 million last year [4] Stock Performance - D.R. Horton shares have declined by 3.7% over the past month, contrasting with a 1.5% increase in the Zacks S&P 500 composite [4]

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [2]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [2]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [1]. - The article notes that past performance is not indicative of future results, reinforcing the need for careful consideration by investors [2].

Group 1 - Hurricane Milton has caused significant damage in Florida, potentially delaying new home construction and impacting the overall U.S. housing market [1] - Florida accounts for 14% of single-family home permits and ranks second in the U.S. for new home construction, with major cities like Jacksonville, Orlando, and Tampa among the top for new builds [2] - Home builders with high exposure in Florida include Taylor Morrison Home Corp, PulteGroup, Lennar Corp, and D.R. Horton Inc [1][2] Group 2 - Lennar reported a 5% year-over-year increase in new orders to 20,587 homes and a 16% year-over-year increase in deliveries to 21,516 homes, with a backlog of 16,944 homes valued at approximately $7.7 billion [3] - Upcoming quarterly earnings reports from Pulte, Taylor Morrison, and D.R. Horton may reflect conservative outlooks due to the hurricane's impact [2][3] - The iShares U.S. Home Construction ETF includes significant holdings in D.R. Horton (14.6%), Lennar (11.7%), and Pulte (7.8%) [3]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research before making investment decisions, particularly regarding instruments they do not fully understand [1].