Why Builder D.R. Horton Shares Are Diving Today
Portfolio Pulse from Akanksha Bakshi
D.R. Horton, Inc (NYSE:DHI) reported Q1 fiscal 2024 sales growth of 7% Y/Y to $7.73 billion, beating estimates. Net sales orders rose 35% to 18,069 homes, and homes closed increased 12% Y/Y. However, EPS of $2.82 missed the consensus by $0.06. The sales order backlog and inventory of unsold homes decreased, and net cash used in operations was $(153.4) million, a significant drop from the previous year's cash flow. The company declared a quarterly dividend and updated its fiscal 2024 outlook, slightly raising revenue and homes closed projections. Despite positive sales growth, shares dropped by 8.06% due to the EPS miss and concerns over cash flow and inventory levels.
January 23, 2024 | 3:31 pm
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D.R. Horton reported strong sales growth but missed EPS expectations and showed a decrease in cash flow from operations. The company also has a high inventory of unsold homes, which may be concerning to investors.
The stock price is likely to be negatively impacted in the short term due to the EPS miss and the significant decrease in cash flow from operations, which are key indicators of financial health. The high inventory of unsold homes may also signal potential future challenges in revenue generation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100