D.R. Horton(DHI)

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3 No-Brainer Construction Stocks to Buy for Outsized Returns Through 2030
investorplace.com· 2024-05-21 20:05
Never before in recent U.S. history has the construction industry had so much investment potential. Today, the scale of infrastructure and resources needed to complete modern projects can lead to both extraordinary financial risk and exceptional reward for investors. Much of the U.S. requires significant infrastructural and housing expansion, leading to lucrative opportunities for the firms that win contracts for renovation and expansion. As such, this leads to some potentially profitable construction stock ...
With Mortgage Rates Topping, Will DR Horton Stock Outperform?
forbes.com· 2024-05-21 09:00
UKRAINE - 2021/07/18: In this photo illustration, a D.R. Horton, Inc. logo seen displayed on a ... [+] smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesOur theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has fared reasonably well this year, rising by about 13% year-to-date. This compares to the S&P 500, which has ga ...
3 Homebuilder Stocks to Buy on Tight Supply and High Demand
investorplace.com· 2024-05-19 13:00
When mortgage rates started to increase rapidly in the middle of 2022, the real estate market ground to a halt. Then, prices started to drop. Now, current median sales price for existing homes is still 5% lower than at the market’s height in May 2022. In March 2024, sales decreased year-over-year (YOY) in all regions of the U.S.It’s slow going in the new construction segment of the real estate industry, too. By the end of 2023, more than 30% of homebuilders had cut prices. The median sales price of new home ...
Here is What to Know Beyond Why D.R. Horton, Inc. (DHI) is a Trending Stock
Zacks Investment Research· 2024-04-30 14:00
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 ...
D.R. Horton: Long-Term Dividend Growth - Just Getting Started
Seeking Alpha· 2024-04-29 14:00
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 Q1 Earnings Beat, Organic Sales Up, '24 View Raised
Zacks Investment Research· 2024-04-24 18:45
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 Q1 Earnings & Homebuilding Revenues Beat, Orders Up
Zacks Investment Research· 2024-04-24 17:41
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%. ...
D.R. Horton(DHI) - 2024 Q2 - Quarterly Report
2024-04-23 18:55
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]
The Top 3 Homebuilder Stocks Worth Adding to Your April Buy List
InvestorPlace· 2024-04-23 17:20
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 ...
This Bargain-Priced Homebuilder Stock Just Raised Its Guidance. Is It a Buy Now?
The Motley Fool· 2024-04-21 15:07
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 ...