“D.R. Horton’s Q3 2024 Financial Results Show Strong Performance Amid Housing Market Optimism”

D.R. Horton, the largest builder in the United States, recently reported their financial results for the third quarter of fiscal 2024. The company saw solid results, including earnings of $4.10 per diluted share, an increase of 5% from the prior year quarter. Consolidated pre-tax income increased 1% to $1.8 billion on a 2% increase in revenues to $10 billion, with a pre-tax profit margin of 18.1%. The company also generated cash flow from home building operations and consolidated cash flow, indicating strong financial performance.

Despite challenges such as inflation and elevated mortgage interest rates, D.R. Horton remains optimistic about the housing market, given the limited supply of affordable homes and favorable demographics supporting housing demand. The company closed 24,155 homes in the third quarter, with an average closing price of $382,200, up 2% sequentially and 1% from the prior-year quarter. Additionally, the company’s home building return on inventory and return on equity remained strong at 29.5% and 21.5%, respectively.

Looking ahead, D.R. Horton expects to maintain a strong capital efficiency to produce consistent returns and increase consolidated operating cash flows. The company plans to focus on enhancing market share and improving its operations while returning more capital to shareholders through both share repurchases and dividends. Overall, D.R. Horton’s somewhat-bullish sentiment and solid financial performance in the third quarter indicate a positive outlook for the company in the housing market.