D.R. Horton (NYSE:DHI) shares are trading lower after the company reported fourth-quarter results. Sales fell 5% year-over-year to $10.0 billion, missing the consensus of $10.2 billion.
Net sales orders increased 1% to 19,035 homes and decreased 2% in value at $7.1 billion. Homebuilding revenue increased 2% to $9.0 billion. Homes closed in the quarter rose 3% to 23,647 homes.
Sales order backlog of homes under contract as of September 30, 2024, decreased 20% to 12,180 homes and 19% in value to $4.8 billion. D.R. Horton had 37,400 homes in inventory, of which 25,700 were unsold as of September 30, 2024.
Net sales orders increased 1% to 19,035 homes and decreased 2% in value at $7.1 billion. Homebuilding revenue increased 2% to $9.0 billion. Homes closed in the quarter rose 3% to 23,647 homes.
Sales order backlog of homes under contract as of September 30, 2024, decreased 20% to 12,180 homes and 19% in value to $4.8 billion. D.R. Horton had 37,400 homes in inventory, of which 25,700 were unsold as of September 30, 2024.
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NewsTranscript
00:00DHI reported EPS of $3.92.
00:04That missed the $4.17 estimate.
00:07Sales came in at $10 billion flat, which missed the $10.2 billion estimate.
00:12So missed on EPS, missed on revenue.
00:15They did raise the dividend from 30 cents to 40 cents.
00:19And then they said they see fiscal year 2025 revenue from 36 to 37.5 billion versus the
00:25$39.4 billion estimate.
00:29So that revenue guidance came in well below market expectations.
00:34So you got the triple whammy there, the miss on EPS, the miss on revenue, the miss on guidance.
00:40And as a result, stock is down $16.40, or about 9% this morning.
00:46Homebuilders never miss.
00:48They never seem to miss, Joel, at least not in the last few years.
00:52So this missing, it is going to the woodshed.
00:55And they may not bring it back out from the woodshed.
00:58Not even sure it's going to survive the woodshed this time.
01:01So it's a big hit here, DHI.
01:04Always interesting.
01:05The setup wasn't great for the homebuilders coming in, because one, we know TLT is continuing
01:09to go down, which we can talk about in a minute.
01:12But just two, even Sentiment, we had a couple others report already, and they were hitting
01:16them on decent earnings.
01:18Miss as a homebuilder, you're in trouble.
01:21And that's what you're seeing here this morning with DHI.
01:24Is this the one Warren's in, or is that Toll Brothers?
01:29I don't know.
01:30Warren is in one of them, but it's small.
01:31AB, look in the background, go to Berkshire and see if he is in this one.
01:36I think he might be, but he's small if he is.
01:40No, he's not in DR Horton.
01:42He is in...
01:43No, he's not in Toll Brothers or DR Horton.
01:46He's in one of them.
01:48You're right, Joel.
01:49He's in one of them.
01:50I don't know which one either.
01:51All right.
01:53Warren is in Lenar, not DR Horton or Toll Brothers.
01:57All right.
01:58Well, I don't know what to...
02:00I'll say if you've been waiting for a gap fill here at 162.22, you're going to get it.
02:06You're going to get it here.
02:07And so this is where you're trading at.
02:09I mean, I'll just look at these two lows.
02:12Well, the next low is 157.09, and then the next low after that is 154.38.
02:20I don't think you're going to see those levels.
02:24I keep an eye on the pre-market low.
02:27Maybe a second.
02:28I don't know where.
02:29This is just such an ugly area on the chart with limited support.
02:32So let's see where the pre-market low is.
02:36If it holds that, you'll get a little bit of a bounce.
02:40If not, you just got to...
02:42If you want to buy this thing today, you're just going to have to scale into it to try
02:44and get a decent price.