NYSE$DFH

Dream Finders Homes Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Dream Finders Homes reported record homebuilding revenues and increased net income for Q4 2023.

Dream Finders Homes announced strong Q4 2023 results, with homebuilding revenues reaching $1.1 billion and net income increasing by 18%. The company's strategic focus on cost management and cycle time reductions contributed to improved gross margins and overall financial performance.

  • Homebuilding revenues increased by 3% to $1.1 billion.
  • Average sales price of homes closed rose by 9% to $520,940.
  • Homebuilding gross margin increased by 340 basis points to 20.5%.
  • Net income attributable to DFH increased by 18% to $102 million, or $1.06 per basic share.

Headline financials

Total Revenue

$1.14B

Previous: $1.1B+3.5%
EPS (adj)

$1.00

Previous: $0.78+28.2%
Net New Orders

1.1K

Previous: 1.1K-0.1%
Average Sales Price

$521K

Previous: $480K+8.6%
Cancellation Rate

22.9%

Previous: 32.1%-28.7%
Ending Backlog Homes

4.0K

Previous: 5.5K-28.3%
Ending Backlog Value

$1.89B

Previous: $2.5B-24.6%
Active Communities

221

Previous: 206+7.3%
Capital Expenditures

$875K

Previous: $1.22M-28.5%
Net Income

$105M

Previous: $90M+16.6%
Operating Income

$135M

Previous: $121M+11.7%
Gross Profit

$236M

Previous: $188M+25.7%
Stock-Based Comp

$3.81M

Previous: $1.98M+92.8%

Revenue & EPS history

Dream Finders Homes · Revenue · Quarterly

$1.14B

Q4 2023+3.5%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Dream Finders Homes · $943M total across 1 segment · Q2 2023

  • Homebuilding
    $943M+19.2%

Forward guidance

Dream Finders Homes expects approximately 8,250 home closings for the full year 2024, inclusive of those from the Crescent Homes acquisition.

Tailwinds

  • Acquisition of Crescent Homes expands market presence.
  • Anticipated increase in home closings for 2024.
  • Strong liquidity position with $828 million available.
  • Reduced net debt to net capitalization ratio.
  • Targeted mortgage buydown programs maintaining net new orders.

Headwinds

  • Deterioration of general economic conditions.
  • Interest rate increases and mortgage availability.
  • Governmental restrictions on land development.
  • Home construction or home sales limitations.
  • Supply chain challenges.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.2%

Avg return

30 days after

43%

9 / 21 earnings

Positive

+25.2%

Q2 2023

Best reaction

-12.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.2%+0.4%+9.2%
Q4 2025-2.0%-11.8%-29.7%
Q3 2025-8.5%-11.8%-8.5%
Q1 2025-3.6%+0.6%-1.1%
Q4 2024+17.9%+13.9%+12.7%
Q3 2024-1.3%+4.0%+6.8%
Q2 2024-10.5%-13.2%+6.0%
Q1 2024-12.4%-13.7%-20.3%
Q4 2023+11.6%+9.3%+26.6%
Q3 2023+11.7%+13.3%+26.1%
Q2 2023+25.2%+25.6%+23.2%
Q1 2023+2.3%+5.6%+21.4%
Q4 2022-0.3%-0.8%+6.1%
Q3 2022+3.5%-0.6%-7.4%
Q2 2022-2.5%-3.5%-5.4%
Q1 2022-6.4%+1.6%-10.1%
Q4 2021+5.1%-6.3%-21.3%
Q3 2021+2.5%+9.7%+16.2%
Q2 2021-8.7%-13.8%-16.6%
Q1 2021-8.8%-7.7%-15.7%
Q4 2020-7.2%-17.7%-14.1%
Q3 2020
Q2 2020
Q1 2020
Q4 2019

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