D.R. Horton, Inc. (NYSE:DHI) Reports Fiscal 2024 Fourth Quarter and Full-Year Results
D.R. Horton, Inc., America's Builder, announced its financial results for the fourth fiscal quarter ended September 30, 2024.
Key Financial Metrics
| Metric | Current Quarter | Year-over-Year | Consensus Estimate |
|---|---|---|---|
| Total Revenue | $10.0 billion | -5% (from $10.5 billion) | $10.22 billion |
| EPS (Earnings Per Share) | $3.92 | -12% (from $4.45) | $4.17 |
Performance Analysis : The fourth quarter of fiscal 2024 showed a decline in both revenue and earnings per share compared to the same quarter last year, falling short of consensus estimates. This decline was driven by affordability challenges and competitive market conditions.
Revenue Performance by Segment
| Segment | 4Q 2024 Revenue | 4Q 2023 Revenue | Change |
|---|---|---|---|
| Home Sales | $8.9 billion | N/A | N/A |
| Rental Operations | $704.8 million | N/A | N/A |
| Financial Services | $222.0 million | $219.5 million | +1% |
Segment Analysis : Home sales remained close to prior year levels, indicating resilience despite market challenges. The financial services benefitted from safe and stable growth, showing a slight increase.
Key Developments
- Earnings per diluted share of $3.92 for Q4.
- Consolidated pre-tax income of $1.7 billion.
- Home sales revenues totaled $8.9 billion with 23,647 homes closed.
- Total liquidity of $7.6 billion.
- Cash dividends paid totaled $97.7 million in Q4; dividend payable raised by 33%.
- Repurchased $1.8 billion of common stock, reducing share count by 3%.
Executive Remarks
David Auld, Executive Chairman, highlighted the company's fiscal year with an earnings per diluted share increase to $14.34 and consolidated pre-tax income of $6.3 billion. He noted the resilience in revenue despite competitive conditions, while expressing concern over expected mortgage rate fluctuations affecting future demand. Initiatives like mortgage rate buydowns and a focus on smaller floor plans were mentioned as strategies to enhance affordability and spur sales.
Shareholder Returns
- Dividends : A new dividend of $0.40 per share was announced, a 33% increase, payable on November 19, 2024.
- Share Repurchase Program : $561.2 million in shares repurchased during Q4, part of a $1.8 billion buyback for the year.
Forward Guidance
D.R. Horton provided initial guidance for fiscal 2025, with expected consolidated revenues of $36.0 billion to $37.5 billion and plans for home closings between 90,000 and 92,000.
Stock Price Movement
Post-earnings, D.R. Horton's stock experienced a decline, with a percentage drop of approximately 5.06%.
The results reflect the impacts of macroeconomic conditions on consumer affordability, mortgage rates, and the strategic responses by D.R. Horton to support demand and maintain market position.
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