Latest news with #DRHorton
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer on D.R. Horton: 'Wall Street Simply Got Too Negative on This Group'
D.R. Horton, Inc. (NYSE:DHI) is one of the stocks that Jim Cramer looked at. During the episode, Cramer discussed the stock in light of the 'roaring' comeback by homebuilders. He said: 'After struggling for the better part of a year, the home builders came roaring back today, led by D.R. Horton, the largest home builder in America… At the end of the day, this is a space most investors have been down on very long time. And you know, may still be true despite the group's modest recovery from the lows over the past few months. Photo by Breno Assis on Unsplash D.R. Horton (NYSE:DHI) builds and sells single-family and attached homes, provides mortgage and title services, and develops rental properties and residential lots. The company also owns non-residential real estate and primarily serves homebuyers. While we acknowledge the potential of DHI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Largest U.S. homebuilder: Housing market shift ‘still pointing towards' bigger incentives
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. Here's why Trump's proposed 401(k) executive order may be very bad news for your retirement Apple iOS 26 is now available to the public. Here's how to get it—and 5 useful new features to try Here's what happened when Albuquerque made riding the bus free On Tuesday, D.R. Horton—America's most valuable and largest homebuilder, with a $46 billion market capitalization and ranked No. 123 on the Fortune 500—reported its third-quarter earnings for the three months ending June 30. While D.R. Horton's earnings didn't wow investors, the fact that there wasn't an accelerated softening beyond what homebuilders—including D.R. Horton—had already reported earlier this year was enough for some Wall Street investors to buy back into homebuilder stocks. For today's piece, we're going to take a closer look at D.R. Horton's earnings and the commentary its executives provided during Tuesday's earnings call. Incentive spending is helping D.R. Horton's home sales hold steady D.R. Horton's net new orders, by its fiscal Q3 (the three months ending June 30th): Q3 2018 —> 14,650 Q3 2019 —> 15,588 Q3 2020 —> 21,519 Q3 2021 —> 17,952 Q3 2022 —> 16,693 Q3 2023 —> 22,879 Q3 2024 —> 23,001 Q3 2025 —> 23,071 D.R. Horton continues to see weakness in Florida While D.R. Horton's national net orders were pretty much flat year-over-year, there was a -10.1% year-over-year drop in its Southeast division. That division includes Florida—which D.R. Horton once again acknowledged remains on the softer/weaker side. 'There's been a lot of a change [weakening] in the dynamic in the Florida markets. And perhaps most so there. Other markets continue to be consistent performers where there's been limited inventory and limited development of lots. And housing production continues to see strong demand in those markets,' D.R. Horton chief operating officer Michael Murray said during their earnings call on July 22, 2025. North (13% of D.R. Horton's Q3 2025 net new orders): Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia, and Wisconsin East (21%): Georgia, North Carolina, South Carolina, and Tennessee Northwest (6%): Colorado, Oregon, Utah, and Washington South Central (27%): Arkansas, Oklahoma, and Texas Southwest (10%): Arizona, California, Hawaii, Nevada, and New Mexico Southeast (24%): Alabama, Florida, Louisiana, and Mississippi D.R. Horton's average sales price moves sideways D.R. Horton's average sales price in Q3 2025 ($369,600) was -7.3% below the third-quarter peak in Q3 2022 ($398,800). It's possible that some of the drop in average sales price is due to shifts in product and geographic mix. Instead of outright price cuts, D.R. Horton has preferred to offer bigger incentives this cycle, such as mortgage rate buydowns. Regardless, D.R. Horton's average sales price confirms that upward pricing momentum has stalled in many markets. D.R. Horton's incentive spend has caused margin compression D.R. Horton reported a 21.8% gross margin on homes for Q3 2025. That's down from 24.0% in Q3 2024; however, it's unchanged from its Q2 2025 gross margin (21.8%). The fact that the margin didn't further compress quarter-over-quarter is why some investors bought the stock back. However, D.R. Horton acknowledged that, looking ahead, the ongoing housing market softening still points towards a bit higher incentives. 'Our commentary really over the last year has been that incentives have been increasing. That's been the main driver for the gross margin decline over the last year. Our operators are striving every day to strike the best balance between hitting pace and maintaining margin in each community to maximize returns. And so they're using all the levers they have with incentives to try to balance that. And so we have seen the pace of incentive cost increases and the pace of margin decline moderate a bit over the last couple of quarters and then this quarter it held flat sequentially [quarter-over-quarter],' Jessica Hansen, head of investor relations at D.R. Horton, said during their earnings call on July 22, 2025. Hansen added that: 'But the trend is still pointing towards a bit higher incentives, and we don't see significant offsets to that, though we will continue to work on costs on the construction side.' On Tuesday, D.R. Horton told investors expect Q4 2025 gross margins to come in between 21.0% and 21.5%. Labor hasn't been an issue for D.R. Horton yet despite the increased ICE crackdown 'From labor availability, it's plentiful. We have the labor that we need. Our trades are looking for work. And that's why you've seen sequential and year-over-year reduction in our cycle time. Because we have the support we need to get our homes built. And, you know, given those efficiencies, reductions in stick and brick [costs] over time. Some of that is from design. And efficiency of the product that we're putting in the field. And some of that is just from the efficiency of our operations,' D.R. Horton CEO Paul Romanowski said during their earnings call on July 22, 2025. Tariffs haven't coincided with higher stick-and-brick costs—but lumber tariffs are something to watch On Tuesday, D.R. Horton told analysts that stick-and-brick costs are down 2% year-over-year and down 1% quarter-over-quarter. Note: My understanding is that 'stick-and-brick costs' include direct construction costs of building a home on-site using traditional wood materials like lumber ('sticks') and masonry materials like concrete ('bricks'). These costs include both materials (e.g., lumber, drywall) and labor (plumbers, roofers, etc.). Although the White House hasn't included Canadian softwood lumber on their broader tariff list, the U.S. government is preparing to more than double the duties on Canadian lumber imports. As a part of its annual review, the U.S. Department of Commerce plans to raise the tariff on Canadian lumber from 14.45% to 34.45%. The U.S. Department of Commerce argues that Canadian lumber is being unfairly subsidized and sold below market value in the U.S. 'It [higher duties on Canadian lumber] will have some potential impact, but we've not quantified that. I know it is a significant step up in the tariff rates, I think, going to effect next month. But, you know, we're buying some percentage of that wood and there's some substitutionary product that would be available as well. Based on where that pricing ultimately settles,' D.R. Horton chief operating officer Michael Murray said during their earnings call on July 22, 2025. Homebuilder stocks got a little bounce following D.R. Horton's earnings Following the earnings reports from D.R. Horton and PulteGroup on Tuesday, Wall Street gave homebuilder shares a slight bounce. While the move doesn't return shares to the highs reached around September 2024, it could signal that some on Wall Street believe homebuilder margin compression is losing momentum. This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Why D.R. Horton Stock Was Rising This Week
Key Points D.R. Horton reported better-than-expected results in its third-quarter earnings report. The company expects to repurchase about 10% of its shares outstanding this year. Mortgage rates are likely to remain elevated, putting pressure on homebuilders. 10 stocks we like better than D.R. Horton › Shares of D.R. Horton (NYSE: DHI) were moving higher this week after the nation's largest homebuilder reported better-than-expected results in its fiscal third-quarter earnings report, despite continued pressure on the housing market, weak consumer sentiment, and elevated mortgage rates. As of Thursday, at 1:10 p.m. ET, D.R. Horton stock was up 10.1% for the week, according to data from S&P Global Market Intelligence. D.R Horton surprises the market Homebuilders might have an advantage over real estate agencies in the current housing market, as the national housing shortage has led to demand for new homes, but growth has still been challenging in the industry due to high mortgage rates. Against that backdrop, D.R. Horton a 7% decline in revenue to $9.2 billion, ahead of the consensus at $8.8 billion. Homes closed fell 4% in the quarter to 23,160, ahead of its guidance, and sales orders were flat year over year and up 3% sequentially, a positive sign. Further down the income statement, the company reported a gross margin of 21.8% and earnings per share of $3.36, which was down from $4.10 in the quarter a year ago, but benefited from a reduction in shares outstanding of 8%. That result was also better than estimates at $2.90. Management acknowledged that demand is being "impacted by ongoing affordability constraints and cautious consumer sentiment." Its sales incentives have remained elevated in order to drive purchasing, which explains the decline in profits. What's next for D.R. Horton? Interest rates seem unlikely to change in the near term, which will continue to put pressure on the stock, but those factors seem to be priced into the stock. For the full year, the company narrowed its revenue guidance to $33.7 billion-$34.2 billion, and it's targeting share buybacks of $4.2 billion-$4.4 billion. With buybacks at that pace, the stock looks like a reasonable buy, even if profits remain flat. Do the experts think D.R. Horton is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did D.R. Horton make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,037% vs. just 182% for the S&P — that is beating the market by 855.37%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends D.R. Horton. The Motley Fool has a disclosure policy. Why D.R. Horton Stock Was Rising This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
4 days ago
- Business
- Fast Company
Largest U.S. homebuilder: Housing market shift ‘still pointing towards' bigger incentives
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. On Tuesday, D.R. Horton—America's most valuable and largest homebuilder, with a $46 billion market capitalization and ranked No. 123 on the Fortune 500—reported its third-quarter earnings for the three months ending June 30. While D.R. Horton's earnings didn't wow investors, the fact that there wasn't an accelerated softening beyond what homebuilders— including D.R. Horton —had already reported earlier this year was enough for some Wall Street investors to buy back into homebuilder stocks. For today's piece, we're going to take a closer look at D.R. Horton's earnings and the commentary its executives provided during Tuesday's earnings call. Incentive spending is helping D.R. Horton's home sales hold steady D.R. Horton's net new orders, by its fiscal Q3 (the three months ending June 30th): Q3 2018 —> 14,650 Q3 2019 —> 15,588 Q3 2020 —> 21,519 Q3 2021 —> 17,952 Q3 2022 —> 16,693 Q3 2023 —> 22,879 Q3 2024 —> 23,001 Q3 2025 —> 23,071 D.R. Horton continues to see weakness in Florida While D.R. Horton's national net orders were pretty much flat year-over-year, there was a -10.1% year-over-year drop in its Southeast division. That division includes Florida—which D.R. Horton once again acknowledged remains on the softer/weaker side. 'There's been a lot of a change [weakening] in the dynamic in the Florida markets. And perhaps most so there. Other markets continue to be consistent performers where there's been limited inventory and limited development of lots. And housing production continues to see strong demand in those markets,' D.R. Horton chief operating officer Michael Murray said during their earnings call on July 22, 2025. North (13% of D.R. Horton's Q3 2025 net new orders): Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, Nebraska, New Jersey, Ohio, Pennsylvania, Virginia, West Virginia, and Wisconsin East (21%): Georgia, North Carolina, South Carolina, and Tennessee Northwest (6%): Colorado, Oregon, Utah, and Washington South Central (27%): Arkansas, Oklahoma, and Texas Southwest (10%): Arizona, California, Hawaii, Nevada, and New Mexico Southeast (24%): Alabama, Florida, Louisiana, and Mississippi D.R. Horton's average sales price moves sideways D.R. Horton's average sales price in Q3 2025 ($369,600) was -7.3% below the third-quarter peak in Q3 2022 ($398,800). It's possible that some of the drop in average sales price is due to shifts in product and geographic mix. Instead of outright price cuts, D.R. Horton has preferred to offer bigger incentives this cycle, such as mortgage rate buydowns. Regardless, D.R. Horton's average sales price confirms that upward pricing momentum has stalled in many markets. D.R. Horton's incentive spend has caused margin compression D.R. Horton reported a 21.8% gross margin on homes for Q3 2025. That's down from 24.0% in Q3 2024; however, it's unchanged from its Q2 2025 gross margin (21.8%). The fact that the margin didn't further compress quarter-over-quarter is why some investors bought the stock back. However, D.R. Horton acknowledged that, looking ahead, the ongoing housing market softening still points towards a bit higher incentives. 'Our commentary really over the last year has been that incentives have been increasing. That's been the main driver for the gross margin decline over the last year. Our operators are striving every day to strike the best balance between hitting pace and maintaining margin in each community to maximize returns. And so they're using all the levers they have with incentives to try to balance that. And so we have seen the pace of incentive cost increases and the pace of margin decline moderate a bit over the last couple of quarters and then this quarter it held flat sequentially [quarter-over-quarter],' Jessica Hansen, head of investor relations at D.R. Horton, said during their earnings call on July 22, 2025. Hansen added that: 'But the trend is still pointing towards a bit higher incentives, and we don't see significant offsets to that, though we will continue to work on costs on the construction side.' On Tuesday, D.R. Horton told investors expect Q4 2025 gross margins to come in between 21.0% and 21.5%. Labor hasn't been an issue for D.R. Horton yet despite the increased ICE crackdown 'From labor availability, it's plentiful. We have the labor that we need. Our trades are looking for work. And that's why you've seen sequential and year-over-year reduction in our cycle time. Because we have the support we need to get our homes built. And, you know, given those efficiencies, reductions in stick and brick [costs] over time. Some of that is from design. And efficiency of the product that we're putting in the field. And some of that is just from the efficiency of our operations,' D.R. Horton CEO Paul Romanowski said during their earnings call on July 22, 2025. Tariffs haven't coincided with higher stick-and-brick costs—but lumber tariffs are something to watch On Tuesday, D.R. Horton told analysts that stick-and-brick costs are down 2% year-over-year and down 1% quarter-over-quarter. Note: My understanding is that 'stick-and-brick costs' include direct construction costs of building a home on-site using traditional wood materials like lumber ('sticks') and masonry materials like concrete ('bricks'). These costs include both materials (e.g., lumber, drywall) and labor (plumbers, roofers, etc.). Although the White House hasn't included Canadian softwood lumber on their broader tariff list, the U.S. government is preparing to more than double the duties on Canadian lumber imports. As a part of its annual review, the U.S. Department of Commerce plans to raise the tariff on Canadian lumber from 14.45% to 34.45%. The U.S. Department of Commerce argues that Canadian lumber is being unfairly subsidized and sold below market value in the U.S. 'It [higher duties on Canadian lumber] will have some potential impact, but we've not quantified that. I know it is a significant step up in the tariff rates, I think, going to effect next month. But, you know, we're buying some percentage of that wood and there's some substitutionary product that would be available as well. Based on where that pricing ultimately settles,' D.R. Horton chief operating officer Michael Murray said during their earnings call on July 22, 2025. Homebuilder stocks got a little bounce following D.R. Horton's earnings Following the earnings reports from D.R. Horton and PulteGroup on Tuesday, Wall Street gave homebuilder shares a slight bounce. While the move doesn't return shares to the highs reached around September 2024, it could signal that some on Wall Street believe homebuilder margin compression is losing momentum. The super-early-rate deadline for Fast Company's Most Innovative Companies Awards is tonight, July 25, at 11:59 p.m. PT. Apply today.
Yahoo
6 days ago
- Business
- Yahoo
D.R. Horton Third-Quarter Results Top Views; Shares Jump Intraday
D.R. Horton's (DHI) fiscal third-quarter results surpassed market estimates despite a softening hous 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
