D.R. Horton (DHI) is witnessing a momentous period, following impressive Q2 and Q3 earnings for the fiscal year 2024, despite the challenging macroeconomic landscape. The strong earnings beat analyst expectations, with a revenue of $10 billion, which has boosted investor confidence significantly leading to a 26% surge in the company's stock. Furthermore, DHI demonstrated resilience in the face of market headwinds with stable earnings and authorized a substantial $4B stock buyback. The revenue guidance was also raised, along with a declaration of a $0.30 per share quarterly dividend.
However, the company faced a slight hiccup as it missed order estimates in a quarter with high rates. There are some concerns around the valuation of D.R. Horton amidst these strong financials, and whether it’s considered expensive. Institutional investors continue to back the company with 83% ownership. Going forward, DHI forecasts a strong 2024, bolstered by a tight supply of existing homes. While price targets have been raised by analysts from Bank of America and UBS Group, the company still needs to manage rising costs and incentives that could squeeze margins.
D R Horton DHI News Analytics from Tue, 07 Nov 2023 08:00:00 GMT to Sat, 27 Jul 2024 13:59:40 GMT - Rating 7 - Innovation 5 - Information 8 - Rumor -4
