Kritika Sarmah
2 min read
Arlington, Texas-based D.R. Horton, Inc. (DHI) operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. With a market cap of $39.5 billion, the company is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets.
The homebuilder is set to unveil its third-quarter results before the markets open on Tuesday, July 22. Ahead of the event, analysts expect DHI to report a non-GAAP earnings of $2.93 per share, down 28.5% from the profit of $4.10 per share reported in the year-ago quarter. Additionally, the company has surpassed the Street’s bottom-line projections in two of the past four quarters, while missing on two other occasions.
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For the current year, its earnings are expected to come in at $11.47 per share, down 20% from $14.34 per share reported in the year-ago quarter. However, in fiscal 2026, its earnings are expected to rise 5.2% year-over-year to $12.07 per share.
DHI stock has declined 8.5% over the past 52 weeks, underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.2% rise and the S&P 500 Index’s ($SPX) 13.6% uptick during the same time frame.
On Apr. 17, DHI shares surged 3.2% following the release of its Q2 earnings. The company’s revenue declined 15.1% year-over-year to $7.7 billion, missing the consensus estimates, primarily due to affordability challenges and declining consumer confidence. Moreover, its adjusted EPS fell 26.7% from the year-ago quarter and failed to touch the consensus estimates by 3%.
The consensus opinion on DHI is moderately optimistic, with a “Moderate Buy” rating overall. Of the 20 analysts covering the stock, opinions include nine “Strong Buys,” nine “Holds,” and two “Strong Sells.” Its mean price target of $151.38 suggests a 17.4% upside potential from 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. This article was originally published on Barchart.com
