D.R. Horton Slashes FY Revenue Outlook to $32.5B-$33B, Cancellations Spike to 20%
DHI is trading near its 52-week low of $129.22 (13% above the low) on elevated volume (2.0× avg).
Summary
D.R. Horton cut its full-year revenue guidance to $32.5B-$33B from $33.5B-$34.5B, citing affordability challenges, high material costs, and fluctuating mortgage rates. The Q3 beat on EPS ($3.20 vs. $2.97) and revenue ($9.23B vs. $9.1B) is overshadowed by the guidance reduction and a jump in cancellation rate to 20% from 17% a year ago. Profit fell to $904.9M from $1.02B, and net orders were flat at $8.4B. The lowered outlook signals management expects headwinds to persist through September, making this a material negative for the stock.
At the time of this announcement, DHI was trading at $146.60 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $41.1B. The 52-week trading range was $129.22 to $184.55. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.