D.R. Horton (DHI) Q4 Earnings: What To Expect

StockStory
01-20
D.R. Horton (DHI) Q4 Earnings: What To Expect

Homebuilder (NYSE:DHI) will be announcing earnings results tomorrow morning. Here’s what you need to know.

D.R. Horton missed analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $10 billion, down 4.8% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations.

Is D.R. Horton a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting D.R. Horton’s revenue to decline 8.4% year on year to $7.08 billion, a reversal from the 6.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.36 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. D.R. Horton has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 8.9% on average.

Looking at D.R. Horton’s peers in the industrials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. KB Home delivered year-on-year revenue growth of 19.5%, beating analysts’ expectations by 0.8%, and Lennar reported a revenue decline of 9.3%, falling short of estimates by 1.7%. KB Home traded up 4.9% following the results while Lennar was down 5.2%.

Read our full analysis of KB Home’s results here and Lennar’s results here.

There has been positive sentiment among investors in the industrials segment, with share prices up 4.2% on average over the last month. D.R. Horton is up 5.4% during the same time and is heading into earnings with an average analyst price target of $173.85 (compared to the current share price of $147.67).

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