- D.R. Horton has adjusted its fiscal year revenue forecast to $33.7 billion-$34.2 billion from a previous range of $33.3 billion-$34.8 billion.
- The company expects to close on 85,000 to 85,500 homes, down from previous expectations of 85,000 to 87,000 homes.
- In the third quarter, the earnings per share (EPS) were $3.36, a decrease from $4.10 year-over-year, but above the estimate of $2.88.
- The pretax profit margin was 14.7%, compared to 18.1% the previous year, but still above the estimate of 13.6%.
- Net sales orders were 23,071, a slight increase of 0.3% year-over-year, surpassing the estimate of 22,017.
- The value of net sales orders was $8.42 billion, a decrease of 3.4% year-over-year, but higher than the estimate of $8.22 billion.
- Homes closed were valued at $8.56 billion, down 7.3% from the previous year, yet above the estimated $8.17 billion.
- The backlog of homes is 14,075, a 16% decrease year-over-year, matching close to the estimate of 14,056.
- The monetary value of the backlog is $5.34 billion, a drop of 19% year-over-year, below the estimate of $5.6 billion.
- The cancellation rate stood at 17%, reduced from 18% in the previous year.
- A total of 23,160 homes were closed in the quarter, a 4.1% decrease year-over-year, yet exceeded the estimate of 22,086.
- The company notes that the demand for new homes continues to be affected by affordability issues and cautious consumer behavior.
- Market recommendations include 7 analysts rating the stock as a “buy,” 11 as “hold,” and 3 as “sell.”
Dr Horton Inc on Smartkarma
On Smartkarma, the independent investment research network, Baptista Research has provided in-depth analyst coverage on Dr Horton Inc. In one report titled “D.R. Horton Battles Tariff Headwinds: Will Smart Sourcing Strategies Protect Its Profits?” the analyst discusses the company’s recent second quarter fiscal 2025 results. Despite a decrease in earnings per diluted share from $3.52 to $2.58 compared to a year ago, Dr Horton Inc achieved consolidated pretax income of $1.1 billion on revenues of $7.7 billion. The report highlights the company’s gross profit margin on home sales for the quarter at 21.8%, showcasing a disciplined approach amid market fluctuations.
Another analysis by Baptista Research, titled “D.R. Horton: Adaptation to Market Trends Powering Our Bullishness! – Major Drivers,” focuses on the company’s first quarter fiscal 2025 financial performance. Despite a decrease in earnings per diluted share from $2.82 to $2.61, Dr Horton Inc generated consolidated revenues of $7.6 billion with pretax income of $1.1 billion, resulting in a pretax profit margin of 14.6%. The report highlights both the strengths and challenges facing the company as it navigates market trends, affirming a bullish outlook on Dr Horton Inc‘s future prospects.
A look at Dr Horton Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, a well-respected indication of a company’s overall outlook, D.R. Horton Inc shows a promising long-term future. With a strong Value score of 4, the company is considered to offer good value for investors. Additionally, the Momentum score of 4 suggests that D.R. Horton Inc is experiencing positive momentum in the market, which can be an encouraging sign for potential growth ahead.
Although the Dividend score is moderate at 2, the Growth and Resilience scores are at a respectable 3, indicating a balanced performance in these areas. As a company that constructs and sells single-family homes in various regions of the United States, with additional financial services operations, D.R. Horton Inc appears to be positioned well for continued success in the competitive housing market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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