/D_R_%20Horton%20Inc_%20outside%20sign%20by-%20JHVEPhoto%20via%20Shutterstock(1).jpg)
Valued at a market cap of $44.9 billion, D.R. Horton, Inc. (DHI) is one of the leading national homebuilders which is primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. The Arlington, Texas-based company also provides mortgage financing services, title insurance policies, and examination and closing services. It is expected to announce its fiscal Q1 earnings results before the market opens on Tuesday, Jan. 21.
Yet, ahead of this event, analysts project the home construction company to report a profit of $2.39 per share, down 15.3% from $2.82 per share in the year-ago quarter. Moreover, the company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on other two occasions. The company’s adjusted earnings of $3.92 per share in the last quarter fell short of the consensus estimates by a notable 6.7% and declined 11.9% from the year-ago figure.
For fiscal 2025, analysts expect DHI to report an EPS of $14, down 2.4% from $14.34 in fiscal 2024. Nonetheless, in fiscal 2026, EPS is projected to grow 10.6% year-over-year to $15.49.
Over the past 52 weeks, shares of DHI have declined 8%, significantly lagging behind both the S&P 500 Index's ($SPX) 23.3% rise and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 25.5.% return over the same period.
Shares of DHI plunged 7.2% on Oct. 29 primarily due to a weak fiscal Q4 earnings report and a disappointing 2025 outlook. The company reported softer-than-expected earnings per share of $3.92 and revenue of $10 billion. The primary reasons for the miss were high mortgage rates and buyer hesitancy, as many potential homebuyers delayed purchases, anticipating further rate declines. Additionally, ongoing affordability challenges and competitive market conditions contributed to a slowdown in buyer activity. Furthermore, its forecast for 2025 revenue of $36 billion to $37.5 billion and home deliveries of 90,000 units to 92,000 units were below analysts’ estimates, signaling reduced growth potential.
Despite this, Wall Street analysts are moderately optimistic about D.R. Horton’s stock, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, nine recommend a "Strong Buy," eight suggest a "Hold," and two indicate a “Strong Sell” rating. This configuration is slightly less bullish than three months ago when 10 analysts suggested a "Strong Buy."
The average analyst price target for DHI is $185.55 indicating a massive 32.7% potential upside from the current levels.
