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Headquartered in Arlington, Texas, D.R. Horton, Inc. (DHI) is a prominent home construction company valued at $44.5 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 Q3 earnings for fiscal 2024 on Thursday, July 18.
Ahead of the event, analysts expect D.R. Horton to report a profit of $3.80 per share, down 2.6% from $3.90 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.
Despite facing challenges such as inflation and higher mortgage rates, D.R. Horton has capitalized on prolonged high interest rates, pent-up demand for new homes, and effective cost management strategies. These factors contributed to a 28.9% year-over-year increase in DHI's Q2 EPS to $3.52, surpassing the consensus estimate by 14.3%.
Looking ahead, analysts expect D.R. Horton to report an EPS of $14.26 in fiscal 2024, up 3.2% from $13.82 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 8.1% annually to $15.42.
DHI stock has rallied 12.5% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 23.7% gains but surpassing the S&P 500 Consumer Discretionary Sector SPDR Fund’s (XLY) 9.2% returns over the same time frame.
D.R. Horton stands as one of the largest homebuilders in the U.S., renowned for its extensive market presence and expertise in providing quality, affordable housing solutions. DHI stock rose marginally on April 18 following the company's Q2 earnings results. The company demonstrated exceptional quarterly performance, driven by strong growth on multiple fronts. Notably, D.R. Horton achieved a remarkable 46% increase in net sales orders from the previous quarter and a solid 14% annual rise, underscoring sustained consumer demand despite constrained housing supply.
Moreover, benefiting from strong financial health and effective leverage management, D.R. Horton has raised its fiscal 2024 guidance for homes closed and consolidated revenues, anticipating full-year revenues between $36.7 billion and $37.7 billion, which underscores its confidence in adeptly navigating market conditions.
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 $166.44, indicating a potential upside of 23.1% from the current price levels.
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.
