D.R. Horton (NYSE:DHI) posted better-than-expected results in the Fiscal third quarter. The company reported earnings of $4.10 per share in the Fiscal third quarter, up by 5% year-over-year, exceeding consensus estimates of $3.75 per share
DHI’s Revenue Breakdown
The home construction company generated revenues of $10 billion in the third quarter, up 2% year-over-year. This beat analysts’ expectations of $9.6 billion. DHI’s homebuilding operations generate more than 85% of its revenues from the sale of completed homes.
In the third quarter, the company’s homebuilding business generated revenues of $9.2 billion, an increase of 6% year-over-year.
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DHI’s Dividends and Stock Buyback
The company declared a quarterly cash dividend of $0.30 per common share, payable on August 8 to stockholders of record on August 1, 2024. During the third quarter, DHI repurchased 3 million shares worth $441.4 million. As of June 30, 2024, DHI had a remaining stock buyback authorization of $459.7 million.
In July, the company’s Board of Directors authorized the repurchase of up to $4 billion of its common stock. This will replace the previous stock buyback authorization and has no expiration date.
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DHI’s FY24 Outlook
Looking forward, management now expects FY24 revenues to be in the range of $36.8 billion to $37.2 billion. For FY24, DHI has forecasted the sale of 90,000 to 90,500 homes. Share repurchases are likely to be worth $1.8 billion in FY24.
Is DHI a Good Investment?
Analysts remain cautiously optimistic about DHI stock, with a Moderate Buy consensus rating based on nine Buys and four Holds. Over the past year, DHI has increased by more than 20%, and the average DHI price target of $174.64 implies an upside potential of 10.8% from current levels. These analyst ratings are likely to change following DHI’s Q3 results today.
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