DH

D.R. Horton, Inc. stock research

Jun 30, 2023

FY2023 Q3

D.R. Horton (DHI) Gross Margin — Quarter Ended Jun 30, 2023

Revenue and cost of revenue both increased compared to the prior quarter, with gross profit rising. Gross margin improved from the prior quarter but weakened from the same quarter one year earlier.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q3

Revenue and cost of revenue both increased compared to the prior quarter, with gross profit rising. Gross margin improved from the prior quarter but weakened from the same quarter one year earlier.

  • Gross profit grew alongside revenue, while cost of revenue increased at a slower pace relative to revenue, supporting the margin improvement sequentially.
  • Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.

Gross margin snapshot

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

Gross margin

26.6%

Gross profit

$2.6B

Revenue

$9.7B

Cost of revenue

$7.1B

Quarter-over-quarter change

+1.8 pts

Year-over-year change

-6.5 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%
Jun 30, 2023$9.7B$2.6B$7.1B26.6%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+1.8 pts

Year-over-year change

Jun 30, 2022

-6.5 pts

What the margin says

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

Gross profit grew alongside revenue, while cost of revenue increased at a slower pace relative to revenue, supporting the margin improvement sequentially.

Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.

Monitor the trend in cost of revenue relative to revenue in future quarters.