The headline numbers for D.R. Horton (DHI) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
D.R. Horton (DHI) came out with quarterly earnings of $3.04 per share, missing the Zacks Consensus Estimate of $3.29 per share. This compares to earnings of $3.92 per share a year ago.
D.R. Horton recorded a lower fourth-quarter profit as affordability concerns continued to put off home buyers.
DHI gears up to report fourth-quarter results as affordability hurdles, mortgage rates and margin pressure weigh on expectations.
D.R. Horton remains a soft "Buy" despite recent fundamental deterioration and a pricier valuation relative to peers. DHI's market leadership, diversified price points, and strong capital returns through dividends and aggressive buybacks support its investment case. Recent results show declining revenue, profits, and backlog due to high interest rates and weak housing demand, but cash flow remains solid.
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Between elevated rates and historically high home prices, the housing market has deterred buyers, many of whom are uncomfortable assuming a 30-year fixed-rate mortgage above 6%, according to the National Association of Realtors (NAR).
D.R. Horton (DHI) reported earnings 30 days ago. What's next for the stock?
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Many homebuilders like D.R. Horton experience the softness in the housing market, but I don't think it will lead to a crash considering their cautious construction and low inventory. DHI takes advantage of its geographical diversification and inventory management to set a strategic pricing, attract demand, and stabilize operating costs. Its robust liquidity with only a 0.90x Net Debt/EBITDA ensures its sustainability.