The 10-second takeaway
For the quarter ended Sep. 30 (Q4), DR Horton missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
DR Horton logged revenue of $1.34 billion. The 10 analysts polled by S&P Capital IQ expected sales of $1.38 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $1.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.30 per share. GAAP EPS of $0.30 for Q4 were 173% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.4%, 210 basis points better than the prior-year quarter. Operating margin was 7.5%, 250 basis points better than the prior-year quarter. Net margin was 7.5%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.21 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $5.50 billion. The average EPS estimate is $0.95.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 580 members out of 1,148 rating the stock outperform, and 568 members rating it underperform. Among 328 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 148 give DR Horton a green thumbs-up, and 180 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DR Horton is hold, with an average price target of $20.75.
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