- D.R. Horton narrows its forecast for homes closed in FY 2024 to 90,000-90,500 from the previous 89,000-91,000.
- Third quarter earnings per share (EPS) reported at $4.10, up from $3.90 year-over-year, exceeding the estimate of $3.76.
- Net sales orders for the quarter reached 23,001, a 0.5% increase year-over-year, but below the estimate of 24,718.
- Net sales orders valued at $8.72 billion, a 0.2% increase year-over-year, falling short of the $9.4 billion estimate.
- Homes closed during the quarter valued at $9.23 billion, marking a 6.1% increase year-over-year and exceeding the $8.97 billion estimate.
- Backlog of homes decreased to 16,792, a 12% year-over-year decline, missing the estimate of 18,682.
- Backlog value fell to $6.55 billion, down 12% year-over-year, below the $7.46 billion estimate.
- Cancellation rate remains steady at 18%, unchanged from last year.
- Total homes closed in the quarter were 24,155, a 5.1% increase year-over-year, beating the estimate of 23,819.
- The company reiterated its fiscal 2024 cash flow guidance for homebuilding operations at approximately $3.0 billion.
- Executive Chairman David Auld highlighted the strong quarterly performance, emphasizing the 5% increase in earnings per share.
- Board of Directors recently approved a new $4.0 billion share repurchase authorization, reflecting confidence in future cash flows.
- Analyst recommendations: 13 buys, 8 holds, and 2 sells.
“`
Dr Horton Inc on Smartkarma
Analyst coverage on Dr. Horton Inc. by independent research network Smartkarma showcases a positive outlook on the company’s performance and growth prospects. Baptista Research‘s report highlights D.R. Horton’s resilience in the face of challenges like inflation and mortgage rates, with a significant increase in earnings and revenue. The effective land resource utilization and critical growth drivers emphasized by the same analyst further bolster the company’s strong financial position and profitability.
Moreover, Value Investors Club underlines Dr. Horton’s position as a leading homebuilder with impressive returns on equity and a compelling valuation. The company’s strategic shift towards an asset-light model, along with its market share expansion and efficiency focus, positions it as a growth-oriented entity in a stable industry. The collective analyst sentiment indicates a bullish stance on Dr. Horton Inc.’s future performance and value proposition in the market.
A look at Dr Horton Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Dr Horton Inc, a company known for constructing and selling single-family homes in various regions across the United States, is positioned for long-term growth. According to the Smartkarma Smart Scores, the company has received a strong score of 4 for Growth, indicating positive prospects for expanding its business and market presence. While the Value and Resilience scores are average at 3, suggesting a stable financial standing and reasonable valuation, the Dividend and Momentum scores are slightly lower at 2 and 3 respectively.
With a focus on providing homes for the entry-level and move-up markets, Dr Horton Inc‘s growth potential is underscored by its strong performance in the Growth category. While the company may not be considered a top performer in terms of dividends or momentum, its overall outlook remains positive and promising for investors looking at long-term opportunities in the real estate sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
