D.r. Horton (DHI) Q4 2023 Earnings Call Transcript Summary
D.R. Horton (DHI) recently held its Q4 2023 earnings call, which provided both bullish and bearish points for investors to consider.
Bullish Points:
1. Earnings of $4.45 per diluted share in Q4
2. Consolidated pre-tax income of $2 billion on a 9% increase in revenues to $10.5 billion
3. Pre-tax profit margin of 19.2%
4. Record 91,204 homes and apartments closed in homebuilding and rental operations
5. Cash flow from operations for 2023 was $4.3 billion
6. Homebuilding return on inventory for the year was 29.7% and return on equity was 22.7%
7. Net sales orders increased 39% from the prior-year quarter
8. Improvements in both labor capacity and availability of materials
9. Strong capital and liquidity positions
10. Strong balance sheet with low leverage and significant liquidity
Bearish Points:
1. Earnings for the year decreased 16% to $13.82 per diluted share
2. Net income for the year decreased 19% to $4.7 billion
3. Higher mortgage rates and inflationary pressures
4. Increased use of incentives and reducing the size of homes to address affordability
5. Higher level of incentives expected in fiscal 2024
6. Homebuilding SG&A was 7.1% of revenues, up 30 basis points from fiscal 2022
7. Uncertainty in the capital markets affecting rental closings guidance
8. Expect challenging market conditions to persist with uncertainty regarding mortgage rates, capital markets, and general economic conditions
9. Higher incentives and costs expected in Q1
10. Recent rise in interest rates may impact margins
For more information about D.R. Horton's earnings call, you can read the relevant news: D.r. Horton (DHI) Q4 2023 Earnings Call Transcript
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