D.R. Horton (NYSE:DHI – Get Free Report) posted its earnings results on Tuesday. The construction company reported $3.20 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.23, Briefing.com reports. The firm had revenue of $9.23 billion during the quarter, compared to analysts’ expectations of $9.10 billion. D.R. Horton had a return on equity of 12.94% and a net margin of 9.51%.The firm’s revenue was up .0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $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 Price Performance
Shares of DHI opened at $143.64 on Wednesday. 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 market capitalization of $40.73 billion, a price-to-earnings ratio of 13.46, a price-to-earnings-growth ratio of 2.02 and a beta of 1.36. The firm has a 50-day simple moving average of $150.54 and a 200-day simple moving average of $150.44. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.97 and a current ratio of 6.46.
D.R. Horton Announces Dividend
Wall Street Analyst Weigh In
Several analysts have recently weighed in on the stock. Wells Fargo & Company boosted their price objective on shares of D.R. Horton from $147.00 to $170.00 and gave the stock an “equal weight” rating in a research report on Wednesday, April 22nd. The Goldman Sachs Group reiterated a “buy” rating on shares of D.R. Horton in a research note on Tuesday. Seaport Research Partners reissued a “neutral” rating on shares of D.R. Horton in a research report on Tuesday, April 7th. Citigroup lifted their target price on D.R. Horton from $162.00 to $173.00 and gave the stock a “neutral” rating in a research report on Thursday, April 23rd. Finally, Zelman & Associates raised D.R. Horton from a “neutral” rating to an “outperform” rating in a research report on Tuesday, July 7th. Five equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $168.62.
Read Our Latest Analysis on D.R. Horton
Institutional Trading of D.R. Horton
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC raised its stake in shares of D.R. Horton by 23.4% during the first quarter. Integrated Wealth Concepts LLC now owns 4,229 shares of the construction company’s stock worth $538,000 after purchasing an additional 803 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in D.R. Horton by 295.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 609 shares of the construction company’s stock valued at $77,000 after buying an additional 455 shares during the period. Sivia Capital Partners LLC acquired a new position in D.R. Horton in the 2nd quarter valued at $302,000. Brown Advisory Inc. raised 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 buying an additional 208 shares during the last quarter. Finally, Cerity Partners LLC lifted its stake in shares of D.R. Horton by 8.9% in the 2nd quarter. Cerity Partners LLC now owns 34,926 shares of the construction company’s stock worth $4,503,000 after acquiring an additional 2,859 shares during the period. 90.63% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting D.R. Horton
Here are the key news stories impacting D.R. Horton this week:
- Positive Sentiment: D.R. Horton delivered Q3 earnings of $3.20 per share versus estimates of about $2.97, and revenue of $9.23 billion topped expectations.
- Positive Sentiment: The company highlighted strong cash flow and solid home closings, which support near-term operational performance. Article Title
- Neutral Sentiment: The board declared a quarterly dividend of $0.45 per share, which supports shareholder returns but is unlikely to be the main driver of the stock move. Article Title
- Negative Sentiment: Management lowered FY2026 revenue guidance to $32.5 billion-$33.0 billion, well below the market’s expectation of roughly $33.9 billion, signaling softer sales ahead. Article Title
- Negative Sentiment: Executives said buyers are still hesitating, with affordability challenges, elevated incentives, and market-specific weakness such as layoffs in Seattle weighing on demand. Article Title
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.
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