The earnings call reflects a complex situation where D.R. Horton experienced strong annual performance and operational efficiency, but faced significant challenges in the fourth quarter. Notably, the company had a decrease in quarterly earnings and faced sales and demand challenges due to external factors like mortgage rate volatility and election uncertainty. Increased incentive costs and SG&A expenses further impacted the short-term financial metrics. Despite these challenges, the company maintains a strong cash flow and continues to return value to shareholders, showing resilience in its operational model.

Company Guidance

During D.R. Horton's Q4 2024 earnings call, the company provided detailed guidance, emphasizing its strong financial performance and strategic outlook for fiscal 2025. Key metrics highlighted included a consolidated pretax income of $1.7 billion for the fourth quarter on revenues of $10 billion, with a pretax profit margin of 17.1%. The company reported full-year earnings per diluted share of $14.34, up 4% from the previous year. The guidance for fiscal 2025 projects consolidated revenues between $36 billion and $37.5 billion and home closings ranging from 90,000 to 92,000. The anticipated income tax rate for 2025 is approximately 24.5%. D.R. Horton plans to return significant capital to shareholders, with $2.4 billion earmarked for share repurchases and around $500 million for dividends. The company also addressed market challenges, noting an increase in incentives to spur demand amid affordability issues, with a focus on smaller floor plans and maintaining competitive mortgage rates. The company's strategic positioning includes 37,400 homes in inventory and a strong lot position, allowing flexibility to adjust to market conditions.

Strong Annual Financial Performance

Earnings per diluted share increased 4% to $14.34 for the year. Consolidated pretax income was $6.3 billion on revenues of $36.8 billion, with a pretax profit margin of 17.1%.

Cash Flow and Shareholder Return

Generated $2.2 billion in cash flow from operations for 2024 and returned all cash to shareholders through repurchases and dividends. Full year share distributions increased by approximately $700 million or 44% from the prior year.

Operational Efficiency

Improved construction cycle times with a decrease of almost a week from the third quarter and a month from a year ago, positioning for faster housing inventory turnover in 2025.

Rental Operations Success

Generated $100 million of pretax income on $705 million of revenues from rental operations in the fourth quarter. For the full year, rental operations generated $229 million of pretax income on $1.7 billion of revenues.

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DR Horton (DHI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DHI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 21, 2025	2025 (Q1)	2.38 / -	2.82	―	―	―
Oct 29, 2024	2024 (Q4)	4.17 / 3.92	4.45	-11.91% (-0.53)
Jul 18, 2024	2024 (Q3)	3.75 / 4.10	3.9	5.13% (+0.20)
Apr 18, 2024	2024 (Q2)	3.07 / 3.52	2.73	28.94% (+0.79)
Jan 23, 2024	2024 (Q1)	2.87 / 2.82	2.76	2.17% (+0.06)
Nov 07, 2023	2023 (Q4)	3.94 / 4.45	4.67	-4.71% (-0.22)
Jul 20, 2023	2023 (Q3)	2.82 / 3.90	4.67	-16.49% (-0.77)
Apr 20, 2023	2023 (Q2)	1.93 / 2.73	4.03	-32.26% (-1.30)
Jan 24, 2023	2023 (Q1)	2.25 / 2.76	3.17	-12.93% (-0.41)
Nov 09, 2022	2022 (Q4)	5.07 / 4.67	3.7	26.22% (+0.97)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DHI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 29, 2024	$179.95	$166.92	-7.24%
Jul 18, 2024	$156.87	$172.72	+10.10%
Apr 18, 2024	$144.84	$144.98	+0.10%
Jan 23, 2024	$156.41	$141.96	-9.24%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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