D.R. Horton, Inc. stock research
FY2024 Q3
D.R. Horton (DHI) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose from the prior quarter but was unchanged year-over-year, while cost of revenue also increased, resulting in a gross margin that improved sequentially but was slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose from the prior quarter but was unchanged year-over-year, while cost of revenue also increased, resulting in a gross margin that improved sequentially but was slightly lower than the year-ago period.
- The strongest observable driver is the relationship between revenue and cost of revenue growth. Sequentially, revenue grew faster than cost of revenue, leading to margin expansion, while year-over-year the cost of revenue rose proportionally more, keeping gross profit flat.
- Compared to the prior quarter, gross margin increased as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin was slightly lower, as revenue increased while gross profit remained flat, indicating a higher cost of revenue proportion.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.5%
Gross profit
$2.6B
Revenue
$10.0B
Cost of revenue
$7.3B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $10.0B | $2.6B | $7.3B | 26.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.9 pts
Year-over-year change
Jun 30, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue and cost of revenue growth. Sequentially, revenue grew faster than cost of revenue, leading to margin expansion, while year-over-year the cost of revenue rose proportionally more, keeping gross profit flat.
Compared to the prior quarter, gross margin increased as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin was slightly lower, as revenue increased while gross profit remained flat, indicating a higher cost of revenue proportion.
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