D.R. Horton (NYSE:DHI) Releases Quarterly Earnings Results

D.R. Horton (NYSE:DHI) issued its quarterly earnings results on Tuesday. The construction company reported $3.20 EPS for the quarter, topping analysts’ consensus estimates of $3.02 by $0.18, Briefing.com reports. The business had revenue of $9.23 billion during the quarter, compared to the consensus estimate of $9.10 billion. D.R. Horton had a net margin of 9.15% and a return on equity of 12.47%. The company’s quarterly revenue was up .0% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.36 earnings per share.

Here are the key takeaways from D.R. Horton’s conference call:

• D.R. Horton reported a solid third quarter with EPS of $3.20, pre-tax income of $1.2 billion, and home sales gross margin of 20.7%, while closing 23,983 homes at the high end of guidance.
• Management said affordability constraints and cautious consumer sentiment continue to weigh on demand, with orders flat year over year and the cancellation rate rising to 20% from 17% a year ago.
• The company trimmed its full-year delivery outlook after demand softened later in the quarter, and now expects Q4 starts to be lower than Q3 while keeping gross margin roughly flat sequentially. Management said it is choosing to protect margin rather than push volume.
• D.R. Horton highlighted strong capital returns and liquidity, including $3.4 billion of operating cash flow over the last 12 months, $616 million of share repurchases in the quarter, and a quarterly dividend of $0.45 per share. The company ended the quarter with $6.1 billion of liquidity and reiterated a long-term leverage target around 20%.
• Management said cost pressures remain mixed: stick-and-brick costs fell 2% sequentially and 5% year over year, but lot costs rose 5% year over year and incentives are expected to stay elevated. The company also expects only modest further cost improvement from here.

D.R. Horton Stock Performance

NYSE:DHI opened at $142.24 on Thursday. The company has a market cap of $40.34 billion, a P/E ratio of 13.53, a P/E/G ratio of 2.01 and a beta of 1.36. The firm’s 50 day moving average is $150.57 and its two-hundred day moving average is $150.42. D.R. Horton has a fifty-two week low of $131.75 and a fifty-two week high of $184.54. The company has a quick ratio of 0.97, a current ratio of 2.64 and a debt-to-equity ratio of 0.27.

D.R. Horton Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Thursday, August 6th will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $1.80 annualized dividend and a yield of 1.3%. D.R. Horton’s dividend payout ratio is 17.13%.

Key D.R. Horton News

Here are the key news stories impacting D.R. Horton this week:

• Positive Sentiment: D.R. Horton’s Q3 results beat Wall Street expectations, with higher closings and better-than-expected revenue and EPS showing the company can still execute well despite a tough housing backdrop.
• Positive Sentiment: Several analysts raised price targets after the earnings report, and one note upgraded the stock, suggesting some confidence that better execution can partially offset weak demand. D.R. Horton: Better Execution Now Offsets Weak Demand (Rating Upgrade)
• Neutral Sentiment: Commentary from analysts and earnings-call coverage points to a mixed setup: valuation remains reasonable and cash returns are strong, but the stock still faces uncertainty from affordability constraints, inventory discipline, and margin pressure. DHI Stock Outlook Hinges on Affordability and Inventory Discipline
• Negative Sentiment: Management’s reduced revenue outlook signals that demand is still not strong enough to support prior expectations, which is the main reason the stock has been weak despite the earnings beat.
• Negative Sentiment: Wall Street sentiment remains split, with some firms lowering targets or keeping cautious ratings, reflecting concern that housing demand and margins may stay pressured near term.

Analysts Set New Price Targets

A number of brokerages recently issued reports on DHI. Zacks Research upgraded shares of D.R. Horton from a “strong sell” rating to a “hold” rating in a research report on Friday, March 27th. Wells Fargo & Company boosted their price target on D.R. Horton from $147.00 to $170.00 and gave the company an “equal weight” rating in a report on Wednesday, April 22nd. Truist Financial increased their price target on D.R. Horton from $140.00 to $150.00 and gave the stock a “hold” rating in a research note on Wednesday, April 22nd. The Goldman Sachs Group reaffirmed a “buy” rating on shares of D.R. Horton in a research report on Tuesday. Finally, UBS Group upped their target price on D.R. Horton from $193.00 to $206.00 and gave the company a “buy” rating in a research note on Wednesday, April 22nd. Five research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $168.17.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC raised its holdings in D.R. Horton by 23.4% in the first quarter. Integrated Wealth Concepts LLC now owns 4,229 shares of the construction company’s stock valued at $538,000 after buying an additional 803 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of D.R. Horton by 295.5% during the 1st quarter. Geneos Wealth Management Inc. now owns 609 shares of the construction company’s stock valued at $77,000 after acquiring an additional 455 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in D.R. Horton during the 2nd quarter worth $302,000. Brown Advisory Inc. boosted its position in D.R. Horton by 3.4% during the 2nd quarter. Brown Advisory Inc. now owns 6,319 shares of the construction company’s stock worth $815,000 after purchasing an additional 208 shares during the period. Finally, Cerity Partners LLC increased its holdings in D.R. Horton by 8.9% in the 2nd quarter. Cerity Partners LLC now owns 34,926 shares of the construction company’s stock valued at $4,503,000 after purchasing an additional 2,859 shares in the last quarter. Institutional investors and hedge funds own 90.63% of the company’s stock.

D.R. Horton Company Profile

D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company’s core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.

Founded in 1978 by Donald R.