Key Points – Earnings slipped year over year as D.R.
Horton reported fiscal Q3 EPS of $3.20 versus $3.36 a year earlier, with affordability pressures and cautious consumer sentiment weighing on demand
Still, revenue came in at $9.2 billion and the company said margins held up better than expected. – Sales were flat, but cancellations rose: net orders were essentially unchanged from last year, while the cancellation rate increased to 20% from 17%. Management said buyers remain in the market, but many need more confidence in the economy and their ability to complete a purchase. – Margins and capital returns remained strong thanks to lower construction costs and disciplined pricing, with gross margin above guidance at 20.7%. D.R.
Horton also kept buying back stock, maintained strong liquidity, and raised its full-year expectations for deliveries, buybacks, and cash flow. – CPI Comes In Cool: Why It Could Revive These 3 Rate-Sensitive Stocks D.R. Horton (NYSE:DHI) reported lower third-quarter earnings from a year earlier as affordability pressures and cautious consumer sentiment continued to weigh on new-home demand, though the company said it maintained margins above its prior expectations through cost controls and disciplined pricing. The Arlington, Texas-based homebuilder reported fiscal third-quarter earnings of $3.20 per diluted share, down from $3.36 per share in the prior-year quarter.