NYSE$DHI

D.R. Horton Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported record results with a 38% increase in net sales orders and a 25% increase in consolidated pre-tax income.

D.R. Horton reported a strong third quarter in fiscal year 2020, marked by significant growth in net sales orders, pre-tax income, and earnings per share. The company's performance reflects its industry-leading market share, broad geographic footprint, and diverse product offerings.

  • Net income per diluted share increased 37% to $1.72.
  • Net income attributable to D.R. Horton increased 33% to $630.7 million.
  • Consolidated revenues increased 10% to $5.4 billion.
  • Net sales orders increased 38% to 21,519 homes and 35% in value to $6.3 billion.

Headline financials

Total Revenue

$5.39B

Previous: $4.91B+9.9%
EPS (adj)

$1.72

Previous: $1.26+36.5%
Homes Closed

17.6K

No prior period
Net Sales Orders

21.5K

No prior period
Cancellation Rate

22.0%

No prior period
Capital Expenditures

-$66.8M

Previous: -$105M+36.6%
Free Cash Flow

$564M

Previous: $370M+52.6%
Net Income

$631M

Previous: $475M+32.8%
Operating Income

$819M

Previous: $615M+33.2%
Gross Profit

$1.31B

Previous: $1.07B+21.5%
Cash & Equivalents

$2.35B

Previous: $864M+172.3%
Total Assets

$18B

Previous: $15.2B+18.1%
Stock-Based Comp

$21.3M

Previous: $18M+18.3%

Revenue & EPS history

D.R. Horton · Revenue · Quarterly

$5.39B

Q3 2020+9.9%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

D.R. Horton · $896M total across 2 segments · Q3 2023

  • Rental Property Sales
    $667M+508.1%
  • Financial Services
    $229M-10.1%

Forward guidance

D.R. Horton plans to maintain a flexible operational and financial position by generating strong cash flows and managing product offerings. The company's strong balance sheet and liquidity provide flexibility to operate effectively through changing economic conditions.

Tailwinds

  • Generating strong cash flows from homebuilding operations.
  • Managing product offerings to optimize inventory returns.
  • Maintaining a strong balance sheet.
  • Ample liquidity provides operational flexibility.
  • Disciplined approach to investing capital.

Headwinds

  • Uncertainty regarding the extent and duration of COVID-19 impacts.
  • Potential effects on the U.S. economy and employment levels.
  • Possible impacts on capital and secondary mortgage markets.
  • Risk to consumer confidence and demand for homes.
  • Potential issues with mortgage loan availability to homebuyers.

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 Q3 2020

Historical avgQ3 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro