NYSE$DHI

D.R. Horton Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

D.R. Horton reported a decrease in net income but an increase in consolidated revenues for Q1 2023.

D.R. Horton reported a solid first quarter of fiscal year 2023, with diluted EPS of $2.76. Consolidated revenues increased by 3% to $7.3 billion, resulting in a pre-tax income of $1.3 billion and a pre-tax profit margin of 17.5%. Despite a moderation in housing demand, the company remains well-positioned with its diverse product offerings and flexible lot supply.

  • Net income attributable to D.R. Horton decreased 16% to $958.7 million, with diluted EPS decreasing 13% to $2.76.
  • Consolidated revenues increased 3% to $7.3 billion, with a pre-tax profit margin of 17.5%.
  • Home sales revenues increased 1% to $6.7 billion on 17,340 homes closed.
  • Rental operations pre-tax income increased to $110.3 million on $327.5 million of revenues.

Headline financials

Total Revenue

$7.26B

Previous: $7.05B+2.9%
EPS (adj)

$2.76

Previous: $3.17-12.9%
Homes Closed

17.3K

Previous: 18.4K-5.7%
Cancellation Rate

27.0%

Previous: 15.0%+80.0%
Capital Expenditures

-$47.5M

Previous: -$30.9M-53.7%
Free Cash Flow

$911M

Previous: $1.11B-18.0%
Net Income

$959M

Previous: $1.14B-16.0%
Operating Income

$1.25B

Previous: $1.49B-16.5%
Gross Profit

$1.97B

Previous: $2.15B-8.4%
Cash & Equivalents

$2.59B

Previous: $2.44B+6.1%
Total Assets

$30.3B

Previous: $25B+21.1%
Stock-Based Comp

$22.9M

Previous: $23.7M-3.4%

Revenue & EPS history

D.R. Horton · Revenue · Quarterly

$7.26B

Q1 2023+2.9%vs Q1 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

D.R. Horton · $465M total across 2 segments · Q1 2023

  • Rental Property Sales
    $328M
  • Financial Services
    $137M-25.7%

Forward guidance

D.R. Horton anticipates potential persistence of pressures from increased mortgage interest rates and economic uncertainty, but believes the limited supply of affordable homes and favorable demographics will support housing demand. They are focused on navigating changing market conditions, maximizing returns and capital efficiency, and enhancing long-term value through disciplined capital investment, dividends, and share repurchases.

Tailwinds

  • Supply of new and existing homes at affordable price points remains limited.
  • Demographics supporting housing demand remain favorable.
  • Company is well-positioned to navigate changing market conditions.
  • Focus on turning inventory to maximize returns and capital efficiency.
  • Plan to maintain disciplined approach to investing capital to enhance long-term value.

Headwinds

  • Moderation in housing demand caused by significant increases in mortgage interest rates.
  • General economic uncertainty.
  • Pressures may persist for some time.
  • Potential for constriction of the credit and public capital markets.
  • Risks associated with land, lot and rental inventory.

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 Q1 2023

Historical avgQ1 2023

+0.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+2.4%

Avg return

30 days after

43%

30 / 69 earnings

Positive

+15.3%

Q2 2020

Best reaction

-12.9%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-0.2%-1.8%-11.3%
Q1 2026-1.7%-3.5%+5.0%
Q4 2025-3.2%-6.2%-1.3%
Q3 2025-1.0%+1.5%+7.4%
Q2 2025+3.2%+6.3%+7.0%
Q1 2025-0.5%-3.2%-12.8%
Q4 2024-6.1%-7.1%-6.1%
Q3 2024+10.4%+12.1%+13.0%
Q2 2024-2.4%+1.6%+4.0%
Q1 2024-11.7%-10.9%-8.0%
Q4 2023+3.5%+4.2%+15.8%
Q3 2023-0.2%+2.5%-8.2%
Q2 2023+4.6%+6.2%+8.2%
Q1 2023-0.2%+0.9%-3.6%
Q4 2022+14.6%+11.2%+16.5%
Q3 2022+5.9%+2.9%+1.6%
Q2 2022-5.5%-6.2%-1.8%
Q1 2022-1.4%-4.6%-4.5%
Q4 2021+2.5%+5.5%+15.4%
Q3 2021+2.3%+1.8%+3.7%
Q2 2021+5.3%+7.8%-3.0%
Q1 2021-5.5%-2.7%-5.6%
Q4 2020+12.2%+12.8%+7.7%
Q3 2020+0.0%-0.6%+8.9%
Q2 2020+15.3%+10.5%+32.8%
Q1 2020+4.9%+1.2%-3.3%
Q4 2019+3.2%+1.6%+3.2%
Q3 2019+4.4%+6.8%+12.0%
Q2 2019-5.7%-5.1%-4.4%
Q1 2019-5.0%-1.9%+6.6%
Q4 2018-8.5%-7.7%-3.0%
Q3 2018+11.0%+10.5%+13.7%
Q2 2018+0.4%-1.5%-5.1%
Q1 2018-0.9%-7.8%-13.4%
Q4 2017+1.3%+4.9%+11.8%
Q3 2017-2.5%-3.5%-3.3%
Q2 2017-3.2%-3.8%-0.5%
Q1 2017+9.2%+7.7%+7.8%
Q4 2016-6.2%-6.9%+0.4%
Q3 2016-1.3%-1.4%-7.4%
Q2 2016-0.9%
Q1 2016-1.3%
Q4 2015+11.3%
Q3 2015+6.9%
Q2 2015-8.4%
Q1 2015+4.6%
Q4 2014+2.5%
Q3 2014-12.9%
Q2 2014+5.3%
Q1 2014+10.4%
Q4 2013+5.5%
Q3 2013-8.8%
Q2 2013+8.1%
Q1 2013+8.2%
Q4 2012-6.6%
Q3 2012-4.8%
Q2 2012+1.0%
Q1 2012-0.3%
Q4 2011-2.5%
Q4 2010-4.2%
Q3 2011-4.2%
Q2 2011-0.1%
Q1 2010-3.3%
Q1 2011+2.7%
Q4 2008-3.4%
Q2 2010-3.4%
Q3 2009-6.8%
Q3 2010-6.8%
Q4 2009-6.8%

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