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).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.