Latest news with #netincome
Yahoo
an hour ago
- Business
- Yahoo
D.R. Horton reports 24% net income drop amid homebuyer incentives
The nation's largest homebuilder reported $1 billion in net income in the quarter ending June 30, a 24 percent decline from the same period last year, when the company reported a net income of $1.4 billion. Its home sales gross margin shrank year over year, due in large part to homebuyer incentives. D.R. Horton reported $1.9 billion in gross profit in the quarter, a sequential increase from $1.6 billion in the previous quarter but a year-over-year decline of $344 million from the $2.2 billion in gross home sales profit reported a year ago. Homebuyer incentives will continue to eat away at the home sales gross margin this quarter, Paul Romanowski, president, CEO and director of D.R. Horton, said. 'The incentives are up, as we've spoken to. That's why we guided to a little lower gross margin into the [current] quarter, but so far, it seems to be doing okay as far as driving traffic and the incremental sales we need,' Romanowski said. The company's homebuilding pace has slowed. Homebuilding revenue dropped 7 percent to $8.6 billion compared to $9.2 billion a year ago. The number of homes sold also decreased year over year from 24,155 to 23,160. When asked about the effect of tariffs, chief financial officer Bill Wheat said 'stick and brick' costs are moderating. 'But 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,' he said. The company partially pinned its hopes on an interest rate change. Incentive levels and home sales gross margin this quarter will depend on the strength of demand, changes in mortgage interest rates and other market conditions, said Jessica Hansen, vice president of investor relations. Despite the year-over-year decline, the quarter saw a sequential improvement after neither of the last two quarters cracked $1 billion in net income. D.R. Horton stock rose 6.7 percent after the company published its revenue outlook. The company's revenue outlook for fiscal year 2025, which started Oct. 1, narrowed slightly. D.R. Horton issued guidance in April that consolidated revenues for the year were expected to fall between $33.3 billion and $34.8 billion; today, the range shrank to $33.7 billion and $34.2 billion. Alan Ratner's concern: 'it looks like the average FICO score of your buyer is down about 5 points year-over-year. It's the lowest it's been in quite a while. LTV — combined LTV is ticking higher as well.' Paul Romanowski, prez, CEO and director: 'The incentives are up as we've spoken to. That's why we guided to a little lower gross margin into the fourth quarter, but so far, it seems to be doing okay as far as driving traffic and the incremental sales we need.' Jessica Hansen, VP of Investor Relations: 'The incentives are up as we've spoken to. That's why we guided to a little lower gross margin into the fourth quarter, but so far, it seems to be doing okay as far as driving traffic and the incremental sales we need.' Bill Wheat, Executive VP & CFO: 'I mean we have seen slight improvement in our stick and brick cost, and so that is a partial offset. But 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 in this quarter, it held still flat sequentially, 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.' Quarter earnings – $3.36 per diluted share, down from $4.10 in Q3 2024 Consolidated pretax income – $1.4b on $9.2b of revenues 23,160 homes closed – sales gross margin of 21.8% Tepid market but cancellations low Hoping for changes in mortgage interest rates DR Horton's Forestar targets Gulf Coast population growth U.S. records yearly surge in home listings These are the top U.S. home builders in 2025 This article originally appeared on The Real Deal. Click here to read the full story. 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
Bloomberg
an hour ago
- Business
- Bloomberg
America Movil's Income Misses as Prepaid Disconnections Rise
Billionaire Carlos Slim's wireless provider America Movil SAB 's net income missed analyst estimates as prepaid subscriber disconnections reached more than a million in the quarter. Net income in the second quarter was 22.3 billion pesos ($1.2 billion), below analysts' estimates of 29.3 billion pesos. Revenue was 233.8 billion pesos, higher than analysts had expected, while a gauge of profitability known as Ebitda, which excludes items such as taxes and depreciations, beat estimates to reach 92.4 billion pesos.
Yahoo
3 hours ago
- Business
- Yahoo
CN Rail lowers earnings expectations, cuts outlook amid trade volatility
MONTREAL — Canadian National Railway Co. reported its net income inched up to $1.17 billion during its second quarter compared with last year, as it said the trade uncertainty is making it difficult for it to provide investors with an outlook. The Montreal-based company says revenue fell about one per cent, to $4.27 billion compared with $4.33 billion a year earlier. Diluted earnings per share for the quarter came in at $1.87, up from $1.75 a year earlier. CN lowered its 2025 forecast for adjusted diluted earnings per share growth, saying it now expects growth in the mid to high single-digit range. A previous estimate from CN expected adjusted diluted earnings per share to increase between 10 and 15 per cent for 2025. CN says it is removing its 2024-26 financial outlook given continued uncertainty surrounding trade and tariff uncertainty. This report by The Canadian Press was first published July 22, 2025. Companies in this story: (TSX:CNR) The Canadian Press
Yahoo
6 hours ago
- Business
- Yahoo
Synchrony Financial (SYF) Reports Strong Earnings Growth Despite Share Buyback Completion
Synchrony Financial recently reported second-quarter earnings, showcasing a rise in net interest income to $4,521 million from the previous year, alongside an improved net income of $967 million. This announcement, combined with declared dividends and a completed share buyback plan repurchasing 2.25% of outstanding shares, likely supported the company's stock surge of 43% over the last quarter. This performance contrasts with broader market trends where the S&P 500 and Nasdaq peaked then slightly retreated amid varied corporate earnings. Synchrony Financial's initiatives and financial results may have thus contributed to its distinct price movement within the prevailing market landscape. We've identified 2 weaknesses with Synchrony Financial and understanding the impact should be part of your investment process. Rare earth metals are the new gold rush. Find out which 26 stocks are leading the charge. The recent boost in Synchrony Financial's net interest income and net income, in conjunction with its completed share repurchase plan, underscores potential alignment with the narrative of strengthening its financial position through diligent capital management. This ties in with the company's focus on enhancing customer loyalty and increasing purchase volume through partnerships and new card offerings, which could support future revenue growth despite previously observed challenges in purchase volume and liquidity yields. Over the past five years, Synchrony Financial's total return surged 231.17%, reflecting significant long-term shareholder value appreciation. In comparison to the recent one-year period, the company outperformed both the US market and the Consumer Finance industry, which recorded returns of 14.8% and 30.8% respectively. Such performance highlights Synchrony Financial's resilience and effective strategies amidst fluctuating market conditions. In light of the recent news, analysts' forecasts for revenue growth of 23.8% annually over the next three years could be further supported by Synchrony's ability to maintain strong capital positions through share buybacks and dividends, enhancing its net interest income. However, a shrinkage in profit margins to 20.1% could temper earnings growth expectations, impacting the anticipated increase to $3.3 billion by 2028. The current share price of $69.44, trading at an 11.6% discount from the US$77.5 price target, suggests potential future appreciation if the company successfully navigates its growth catalysts. Assess Synchrony Financial's previous results with our detailed historical performance reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SYF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
7 hours ago
- Business
- Yahoo
First Financial Corp.: Q2 Earnings Snapshot
TERRE HAUTE, Ind. (AP) — TERRE HAUTE, Ind. (AP) — First Financial Corp. (THFF) on Tuesday reported net income of $18.6 million in its second quarter. The bank, based in Terre Haute, Indiana, said it had earnings of $1.57 per share. The holding company for First Financial Bank posted revenue of $84.6 million in the period. Its revenue net of interest expense was $63.1 million, surpassing Street forecasts. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on THFF at Sign in to access your portfolio
