All articles tagged with #dr horton
Originally Published 5 months ago — by ResiClub
Warren Buffett has made a new investment bet on the housing market, signaling confidence in America's two largest homebuilders, D.R. Horton and Lennar.
Originally Published 5 months ago — by TipRanks
D.R. Horton stock surged 13% after reporting a surprising earnings beat with EPS of $3.36 and revenue of $9.23 billion, driven by buyer incentives amid high interest rates. Despite strong quarterly results, the company faces ongoing challenges with consumer spending and has lowered its revenue forecast for the year. Analysts give a moderate buy rating with a target price suggesting nearly 10% upside.
Originally Published 1 year ago — by WOLF STREET
D.R. Horton's stock plummeted 9.2% after revealing a $65 million mark-to-market charge for a hedge gone awry due to the unexpected costs of mortgage-rate buydowns, on top of regular buydown costs, caused by the massive swing in mortgage rates during the quarter. The company increased the use of buydowns, with 70% of its deals made with mortgage-rate buydowns in Q4, and plans to continue using them to stay competitive. The plunge in mortgage rates in November and December caused the company's hedges on those buydowns to lose market value, triggering the charge.
Originally Published 1 year ago — by Yahoo Finance
D.R. Horton's weaker-than-expected quarterly orders and earnings per share miss led to a 9% drop in its stock, impacting the SPDR S&P Homebuilders ETF as well. The company plans to continue using mortgage rate buydowns as an incentive for buyers, despite caution over potential rate shifts. While longer-term interest rates have risen, new construction has helped boost housing inventory amid low supply in the resale market. D.R. Horton expects higher home closings this fiscal year, reflecting ongoing challenges and strategies in the housing market.
Originally Published 1 year ago — by Yahoo Finance
D.R. Horton's stock fell after reporting mixed Q1 results, with earnings of $2.82 per share falling short of estimates while revenue of $7.7 billion exceeded Wall Street expectations. The homebuilder raised the upper end of its 2024 revenue outlook, but concerns about higher mortgage rates impacting the housing market and a decrease in net income and backlog of homes under contract contributed to the stock's decline.
Originally Published 2 years ago — by Yahoo Finance
D.R. Horton is set to report its first-quarter fiscal 2024 results, with estimates indicating a 4.4% increase in earnings per share and 5% year-over-year revenue growth. The company's homebuilding revenues are expected to have improved due to higher homes closed, but higher costs may impact margins. The Zacks model predicts an earnings beat for D.R. Horton, which currently carries a Zacks Rank #3. Other companies in the construction sector with favorable combinations for an earnings beat include Meritage Homes Corporation, THOR Industries, Inc., and Trex Company, Inc.
Originally Published 2 years ago — by The Dallas Morning News
D.R. Horton, the largest homebuilder in the United States, announced that CEO David Auld will step down and become executive vice chair of the company's board of directors on October 1. Paul Romanowski, the co-chief operating officer, will take over as president and CEO. Founder Donald R. Horton will continue as chairman of the board but will no longer serve as an executive officer. The company did not provide a reason for Auld's departure. Romanowski has been with the company for 20 years and is praised for his leadership and performance. D.R. Horton achieved significant growth and operational improvements under Auld's tenure.
Originally Published 2 years ago — by Fox Business
Warren Buffett's Berkshire Hathaway has acquired approximately 5.7 million shares of D.R. Horton, the largest homebuilder in the U.S., despite challenges in the housing market. Berkshire's investment in D.R. Horton aligns with its long-term investment strategy, as the company trades at attractive multiples and generates strong free cash flow. D.R. Horton has also adapted to market conditions by developing a rent-to-own model and focusing on single-family rental development. Confidence among builders in the U.S. housing market has unexpectedly declined due to rising mortgage rates, but Buffett remains optimistic about the sector's long-term prospects. In addition to D.R. Horton, Berkshire Hathaway has also invested in Ryan Homes' parent company NVR and Lennar Corporation.
Originally Published 2 years ago — by CNBC
Discover Financial's shares slipped after CEO Roger Hochschild resigned, while Turnstone Biologics saw a slight decline after receiving coverage from investment firms. D.R. Horton's stock rose after Warren Buffett's Berkshire Hathaway added a stake in the company, and Hannon Armstrong Sustainable Infrastructure Capital climbed following an upgrade from Bank of America. Phillips 66 fell after a downgrade, and major U.S. banks including Morgan Stanley, JPMorgan Chase, Bank of America, and Citigroup traded lower amid potential downgrades from Fitch Ratings. Nvidia's stock climbed before the bell, and Cleveland-Cliffs' shares fell after its bid to buy U.S. Steel was rejected.
Originally Published 2 years ago — by Fortune
D.R. Horton, the largest publicly traded homebuilder in the US, successfully navigated the housing market amid a historic affordability squeeze by reducing profit margins, offering aggressive rate buydowns, and cutting prices in certain communities. These affordability adjustments, combined with a lack of existing home inventory, put single-family builders in a favorable position. Despite the impact on profits, D.R. Horton's earnings and revenue improved in Q2 2023, and the company moved up in the Fortune 500 rankings. The CEO believes the housing market remains undersupplied and sees opportunities in the build-to-rent business.