Q4 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$117.72Last close (Nov 6, 2023)
Post-Earnings Price$118.80Open (Nov 7, 2023)
Price Change
$1.08(+0.92%)
- Significant Increase in Net Sales Orders: D.R. Horton reported a 39% increase in net sales orders in the fourth quarter compared to the prior year quarter, indicating strong demand for their homes.
- Improved Gross Profit Margins: The company achieved a gross profit margin on home sales revenues of 25.1%, which is up 180 basis points sequentially from the June quarter, reflecting improving profitability.
- Strong Financial Position and Cash Flow: D.R. Horton maintains a strong balance sheet with low leverage and significant liquidity, expecting to generate $3 billion of cash flow from homebuilding operations in fiscal 2024, providing flexibility to capitalize on market opportunities.
- Management anticipates challenging market conditions with continued uncertainty regarding mortgage rates, capital markets, and general economic conditions that may significantly impact their business.
- D.R. Horton expects homebuilding gross margins to decline in the first quarter of fiscal 2024 due to increased incentives necessary to address affordability amid volatile mortgage rates.
- Increased investments in multifamily rental projects in fiscal 2024 may offset cash flow from homebuilding operations and potentially limit free cash flow available to shareholders.