D.R. Horton Earnings Preview: What to Expect

Arlington, Texas-based D.R. Horton, Inc. (DHI) is a prominent home construction company valued at $60.2 billion by market cap. As one of the largest homebuilders in the U.S., D.R. Horton specializes in constructing and selling single-family homes, townhomes, and condominiums. The company is set to announce its Q4 earnings for fiscal 2024 on Tuesday, Oct. 29.

Ahead of the event, analysts expect D.R. Horton to report a profit of $4.14 per share, down 7% from $4.45 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the last four quarters while missing on one other occasion. In the previous quarter, it reported an EPS of $4.10, which exceeded the consensus estimate by 7.9%.

Analysts expect D.R. Horton to report an EPS of $14.03 in fiscal 2024, up 1.5% from $13.82 in fiscal year 2023. Looking ahead, its fiscal 2025 EPS is projected to rise 9.3% annually to $15.33. 

DHI stock has rallied 80.5% over the past 52 weeks, outperforming the broader S&P 500 Index's ($SPX) 35.4% gains and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 24.2% returns over the same time frame.

D.R. Horton has held the title of the largest U.S. residential construction company by volume for over 20 years. Additionally, with anticipated rate cuts on the horizon, the company expects to see a significant boost in profitability in the near future.

Homebuilder stocks faced pressure on Oct. 4 following a rise in the 10-year T-note yield to a 1.75-month high, which negatively impacted housing demand. Consequently, DHI dropped by more than 3%.

The current consensus rating on D.R. Horton stock is “Moderate Buy” overall. Among the 20 analysts covering the stock, ten recommend a "Strong Buy," two suggest a "Moderate Buy," six advise a "Hold," and the remaining two give a "Strong Sell."

Furthermore, the average analyst price target for D.R. Horton is $195.17, indicating a potential upside of 4.3% from the current price levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.