D.R. Horton, Inc. stock research
FY2024 Q4
D.R. Horton (DHI) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was stable quarter over quarter, while gross profit held level and cost of revenue rose slightly, causing gross margin to weaken. Compared with the same quarter last year, revenue, gross profit, and gross margin were all lower, and cost of revenue was also lower.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q4
Revenue was stable quarter over quarter, while gross profit held level and cost of revenue rose slightly, causing gross margin to weaken. Compared with the same quarter last year, revenue, gross profit, and gross margin were all lower, and cost of revenue was also lower.
- The gross margin declined sequentially and year over year, driven by a small increase in cost of revenue relative to stable revenue in the current quarter. The prior-year comparison shows that both revenue and cost of revenue decreased, but revenue declined more, resulting in a lower margin.
- Gross margin weakened compared to the prior quarter and the same quarter a year ago. Revenue was unchanged from the previous quarter but was lower than last year, while cost of revenue increased slightly from the prior quarter and decreased from last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.5%
Gross profit
$2.6B
Revenue
$10.0B
Cost of revenue
$7.4B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-1.3 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $10.0B | $2.6B | $7.4B | 25.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.0 pts
Year-over-year change
Sep 30, 2023
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined sequentially and year over year, driven by a small increase in cost of revenue relative to stable revenue in the current quarter. The prior-year comparison shows that both revenue and cost of revenue decreased, but revenue declined more, resulting in a lower margin.
Gross margin weakened compared to the prior quarter and the same quarter a year ago. Revenue was unchanged from the previous quarter but was lower than last year, while cost of revenue increased slightly from the prior quarter and decreased from last year.
Monitor the trajectory of cost of revenue, which increased modestly from the prior quarter while revenue remained flat.