Summary by Futu AI
D.R. Horton reported solid Q3 FY2024 results with net income rising to $1.35 billion, or $4.10 per diluted share, compared to $1.34 billion in the prior year quarter. Home sales revenue increased 6% to $9.2 billion, driven by a 5% increase in homes closed to 24,155 units and a 1% increase in average selling price to $382,200. Home sales gross margin improved to 24.0% from 23.3% year-over-year.Net sales orders remained stable with a 1% increase to 23,001 homes, while the value held steady at $8.7 billion despite elevated mortgage rates. The company maintained strong operational efficiency with homebuilding SG&A at 7.1% of revenues. The homebuilding segment generated pre-tax income of $1.57 billion, representing a robust 17.0% pre-tax margin.The company continued to strengthen its financial position with $3.0 billion in cash and cash equivalents. During the quarter, D.R. Horton repurchased 3.0 million shares for $441.4 million and paid quarterly dividends of $0.30 per share. The company's net debt to total capital ratio remained conservative at 9.9%, positioning it well for future growth opportunities.
