DH

D.R. Horton, Inc. stock research

Mar 31, 2023

FY2023 Q2

D.R. Horton (DHI) Gross Margin — Quarter Ended Mar 31, 2023

Revenue was stable compared to the same quarter one year earlier, while gross profit and gross margin both declined. Compared to the immediately preceding quarter, revenue increased but gross profit was flat, and gross margin weakened.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q2

Revenue was stable compared to the same quarter one year earlier, while gross profit and gross margin both declined. Compared to the immediately preceding quarter, revenue increased but gross profit was flat, and gross margin weakened.

  • The decline in gross margin from the prior quarter and the year-ago quarter was driven by a higher cost of revenue relative to revenue, as gross profit did not increase proportionally.
  • Compared to the immediately preceding quarter, revenue was higher but gross profit was stable, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was stable while gross profit was lower, leading to a weakened gross margin.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

24.8%

Gross profit

$2.0B

Revenue

$8.0B

Cost of revenue

$6.0B

Quarter-over-quarter change

n/a

Year-over-year change

-7.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$8.0B$2.0B$6.0B24.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

-7.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decline in gross margin from the prior quarter and the year-ago quarter was driven by a higher cost of revenue relative to revenue, as gross profit did not increase proportionally.

Compared to the immediately preceding quarter, revenue was higher but gross profit was stable, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was stable while gross profit was lower, leading to a weakened gross margin.

Monitor the trend in cost of revenue relative to revenue, as it has increased compared to both the prior quarter and the year-ago quarter.