The 10-second takeaway
For the quarter ended June 30 (Q3), DR Horton missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins contracted.
DR Horton logged revenue of $1.69 billion. The 14 analysts polled by S&P Capital IQ foresaw a top line of $1.74 billion on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $1.15 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 $0.42. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.42 for Q3 were 81% lower than the prior-year quarter's $2.21 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 21.8%, 310 basis points better than the prior-year quarter. Operating margin was 11.9%, 510 basis points better than the prior-year quarter. Net margin was 8.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $6.40 billion. The average EPS estimate is $1.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 595 members out of 1,155 rating the stock outperform, and 560 members rating it underperform. Among 291 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give DR Horton a green thumbs-up, and 140 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DR Horton is outperform, with an average price target of $26.53.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.