D.R. Horton (DHI) reported earnings 30 days ago. What's next for the stock?
These home builders are showing the best growth potential for sales and for earnings.
Previously unloved stocks are making a big comeback before Jackson Hole, the Federal Reserve's annual summer economic summit
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.
Downgrading DHI to sell as affordability pressures and cautious consumer sentiment are clearly hurting demand, margins, and backlog. Management's increased use of incentives and shift to lower-priced homes signal demand is being bought, not organic, pressuring long-term profitability. Stock trades at 12x forward PE, well above historical mid-cycle multiples, despite deteriorating fundamentals and weakening demand outlook.
D.R. Horton, Inc. (NYSE:DHI ) Q3 2025 Earnings Conference Call July 22, 2025 8:30 AM ET Company Participants Bill W. Wheat - Executive VP & CFO Jessica Leigh Hansen - Vice President of Investor Relations Michael J.
D.R. Horton, Inc. DHI reported better-than-expected third-quarter fiscal 2025 (ended June 30, 2025) results, with earnings and total revenues topping Zacks Consensus Estimate but decreasing on a year-over-year basis. The continued housing market softness due to declining consumer confidence and affordability concerns marred the company's quarterly performance, resulting in lower home closings, alongside decreased average selling price (ASP).
The headline numbers for D.R. Horton (DHI) give insight into how the company performed in the quarter ended June 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 $3.36 per share, beating the Zacks Consensus Estimate of $2.9 per share. This compares to earnings of $4.1 per share a year ago.
D.R. Horton's stock surges after profit and new home orders beat expectations, but sales incentives are likely to increase to boost demand.
DHI braces for a Q3 earnings drop as soft demand, margin pressure, and high rates weigh on home closings and revenues.
Get a deeper insight into the potential performance of D.R. Horton (DHI) for the quarter ended June 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.