Why D.R. Horton, Inc. Stock Plunged Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of homebuilder D.R. Horton, (NYSE: DHI  ) fell 11.6% today after reporting second-quarter earnings.

So what: Net sales orders in the quarter jumped 32%, to $2.4 billion, and revenue was up 28%, to $2.1 billion, but the bottom line deteriorated on discounting. Net income dropped 22.5%, to $113.1 million, or $0.32 per share, well below the $0.49 analysts expected.

Now what: The housing market has been in a long-term recovery, but early in 2014, there are signs of fatigue. Buyers who could afford to get into new homes have already done so, and the labor market isn't leading to a new batch of buyers. Combine that with a large increase in home values during the last year, and interest rates that are higher than they were to begin 2013, and you have companies competing harder for the buyers who are out there. That's why the bottom line looked so bad for D.R. Horton.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3043612, ~/Articles/ArticleHandler.aspx, 9/4/2015 9:14:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated Moments ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 4:02 PM
DHI $30.39 Down -0.89 -2.85%
D.R. Horton, Inc. CAPS Rating: ***