D.R. Horton, Inc. stock research
FY2024 Q2
D.R. Horton (DHI) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose in line with revenue. Gross margin weakened slightly from the preceding quarter but improved from the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose in line with revenue. Gross margin weakened slightly from the preceding quarter but improved from the year-ago period.
- The primary observable margin driver is the relationship between revenue and cost of revenue. Gross profit grew proportionally with revenue, keeping gross margin relatively stable across periods.
- Compared to the preceding quarter, gross margin was slightly lower, driven by a higher proportion of cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, as gross profit grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.6%
Gross profit
$2.3B
Revenue
$9.1B
Cost of revenue
$6.8B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $9.1B | $2.3B | $6.8B | 25.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.4 pts
Year-over-year change
Mar 31, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable margin driver is the relationship between revenue and cost of revenue. Gross profit grew proportionally with revenue, keeping gross margin relatively stable across periods.
Compared to the preceding quarter, gross margin was slightly lower, driven by a higher proportion of cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was higher, as gross profit grew faster than cost of revenue.
Monitor the cost of revenue trend relative to revenue, as any shift in their relationship could affect gross margin stability.