D.R. Horton beats Q1 revenue and EPS estimates; backs FY forecast
Overview
U.S. homebuilder's fiscal Q1 revenue rose, beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Company repurchased 4.4 mln shares for $669.7 mln in Q4
Outlook
D.R. Horton expects sales incentives to remain elevated due to market conditions and mortgage interest rates
Co reiterates fiscal 2026 revenue guidance of $33.5 bln to $35.0 bln
Company expects to close 86,000 to 88,000 homes in fiscal 2026
D.R. Horton plans share repurchases of approximately $2.5 bln in fiscal 2026
Result Drivers
AFFORDABILITY CONSTRAINTS - Co said affordability constraints and cautious consumer sentiment impacted new home demand
STRONG LIQUIDITY - Co highlighted strong liquidity and operational flexibility to meet market demand
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $6.90 bln | $6.60 bln (14 Analysts) |
Q1 EPS | Beat | $2.03 | $1.93 (16 Analysts) |
Q1 Dividend |
| $0.45 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 11 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the homebuilding peer group is "buy."
Wall Street's median 12-month price target for D.R. Horton Inc is $159.50, about 2.3% below its January 16 closing price of $155.96
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nBw4jJxhPa
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