D.R. Horton, Inc. stock research
FY2024 Q1
D.R. Horton (DHI) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined at a slightly slower pace, resulting in a lower gross margin. Versus the same quarter last year, revenue and cost of revenue both increased, but gross profit remained stable, leading to a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined at a slightly slower pace, resulting in a lower gross margin. Versus the same quarter last year, revenue and cost of revenue both increased, but gross profit remained stable, leading to a slightly weakened gross margin.
- The gross margin weakened sequentially and year-over-year, with the decline from the prior quarter being more pronounced. The relationship between revenue and cost of revenue shows that cost of revenue did not decrease proportionally with revenue in the sequential comparison.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was higher, gross profit was stable, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.0%
Gross profit
$2.0B
Revenue
$7.7B
Cost of revenue
$5.7B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $8.0B | $2.0B | $6.0B | 24.8% |
| Jun 30, 2023 | $9.7B | $2.6B | $7.1B | 26.6% |
| Sep 30, 2023 | $10.5B | $2.8B | $7.7B | 26.9% |
| Dec 31, 2023 | $7.7B | $2.0B | $5.7B | 26.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.9 pts
Year-over-year change
Dec 31, 2022
-1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially and year-over-year, with the decline from the prior quarter being more pronounced. The relationship between revenue and cost of revenue shows that cost of revenue did not decrease proportionally with revenue in the sequential comparison.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was higher, gross profit was stable, and gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline sequentially contributed to margin compression.