The 10-second takeaway
For the quarter ended June 30 (Q3), D.R. Horton missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share improved significantly.
Margins increased across the board.
D.R. Horton chalked up revenue of $1.15 billion. The 14 analysts polled by S&P Capital IQ foresaw a top line of $1.19 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $999.2 million.
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 $0.20. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $2.22 for Q3 were much higher than the prior-year quarter's $0.09 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 18.5%, 170 basis points better than the prior-year quarter. Operating margin was 6.6%, 120 basis points better than the prior-year quarter. Net margin was 68.5%, 6,560 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.39 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $4.35 billion. The average EPS estimate is $0.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 568 members out of 1,137 rating the stock outperform, and 569 members rating it underperform. Among 335 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give D.R. Horton a green thumbs-up, and 194 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on D.R. Horton is outperform, with an average price target of $17.98.
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