DR Horton (NYS: DHI) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q3), DR Horton missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share shrank significantly.
Gross margins grew, operating margins expanded, net margins contracted.
DR Horton logged revenue of $1.69 billion. The 14 analysts polled by S&P Capital IQ foresaw a top line of $1.74 billion on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $1.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.42 for Q3 were 81% lower than the prior-year quarter's $2.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.8%, 310 basis points better than the prior-year quarter. Operating margin was 11.9%, 510 basis points better than the prior-year quarter. Net margin was 8.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.96 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $6.40 billion. The average EPS estimate is $1.22.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 595 members out of 1,155 rating the stock outperform, and 560 members rating it underperform. Among 291 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 151 give DR Horton a green thumbs-up, and 140 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DR Horton is outperform, with an average price target of $26.53.
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The article DR Horton Beats on EPS But GAAP Results Lag originally appeared on Fool.com.
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