D.R. Horton (NYSE: DHI), Warner Bros. Discovery (NASDAQ: WBD), and CrowdStrike (NASDAQ: CRWD) are grabbing investors’ attention today. These companies made headlines due to earnings results, strategic considerations, and analyst downgrades, respectively, causing notable shifts in their stock prices.
D.R. Horton Stock Surges on Q3 Earnings Report Beating Expectations
D.R. Horton (DHI) shares surged 11.64% to $175.84 following the release of its third-quarter earnings report. The homebuilder exceeded analyst expectations, reporting earnings per share of $4.10 and revenue of $10.0 billion, compared to projections of $3.77 EPS and $9.64 billion in revenue. D.R. Horton’s net income rose 1% to $1.35 billion, while consolidated revenues climbed 2% to $10.0 billion.
The company closed 24,155 homes, a 5% increase from the previous year, with the value of homes closed growing by 6% to $9.2 billion. In light of these strong results, D.R. Horton updated its full-year guidance, projecting consolidated revenues between $36.8 billion and $37.2 billion, and announced a new $4.0 billion share repurchase authorization.
WBD Stock Gains on Reports of a Potential Major Restructuring of the Media Giant
Warner Bros. Discovery (WBD) saw its stock price rise 5.29% to $8.76 amid reports that the company is considering a major restructuring. According to the Financial Times, WBD is exploring the possibility of splitting its digital streaming and studio businesses from its legacy TV networks.
This strategic move could potentially boost the company’s sagging share price, which has contributed to a market capitalization decline of about one-third over the past year to $20 billion.
The proposed “strategic spin-off” would create a separate company comprising WBD’s legacy television assets, allowing the streaming and studio business to operate with fewer borrowings and more flexibility for growth investments.
However, the plan is still in its early stages, with no investment bank hired to initiate any specific transaction.
CrowdStrike Shares Fall After Redburn Downgrades Stock from Neutral to Sell
CrowdStrike (CRWD) shares fell 3.64% to $342.01 following a downgrade by Redburn Atlantic from Neutral to Sell. The research firm also lowered its price target for the cybersecurity company from $380 to $275.
Redburn cited concerns that the market may be overestimating future growth in the cybersecurity sector, viewing the recent boost from generative AI as a short-term acceleration rather than a sustainable trend. The analysts also pointed to challenges in penetrating the very large enterprise market and worries about offsetting deflationary impacts.
Despite the downgrade, CrowdStrike’s year-to-date return remains strong at 33.95%, outperforming the S&P 500‘s 16.93% gain over the same period.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.