D.R. Horton (NYSE:DHI) Posts Earnings Results, Misses Expectations By $0.34 EPS

D.R. Horton (NYSE:DHI) issued its earnings results on Thursday. The construction company reported $2.67 earnings per share for the quarter, missing analysts’ consensus estimates of $3.01 by ($0.34), Zacks reports. D.R. Horton had a net margin of 9.15% and a return on equity of 12.47%. The business had revenue of $9.37 billion during the quarter, compared to analyst estimates of $9.07 billion. During the same period in the prior year, the business posted $3.04 EPS. The company’s revenue for the quarter was down 3.2% compared to the same quarter last year.

Here are the key takeaways from D.R. Horton’s conference call:

• Demand weakened as mortgage rates rose and consumer confidence remained cautious; fourth-quarter net orders fell 7% year over year, while the cancellation rate increased to 23%.
• Home sales gross margin declined to 19.5%, below expectations, and management expects further pressure in fiscal Q1 2027, guiding to an 18%–18.5% margin as incentives remain elevated and affordability stays constrained.
• Fiscal 2027 guidance reflects continued market uncertainty, with revenue expected at $30 billion–$32 billion and home closings at 79,000–84,000; management does not assume a meaningful near-term decline in mortgage rates.
• D.R. Horton generated $3.5 billion of operating cash flow in fiscal 2026 and plans approximately $3 billion of share repurchases plus $500 million in dividends in fiscal 2027; the quarterly dividend was increased 11% to $0.50 per share.
• The company reduced starts and inventory to align with demand while maintaining historically low cycle times, strong liquidity of $7.2 billion, and a flexible lot strategy that management believes can support market-share gains when conditions improve.

D.R. Horton Price Performance

DHI stock traded down $0.88 during trading on Friday, hitting $145.65. The stock had a trading volume of 894,928 shares, compared to its average volume of 2,719,388. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.04 and a current ratio of 6.43. The stock has a market cap of $40.74 billion, a price-to-earnings ratio of 13.86, a price-to-earnings-growth ratio of 2.23 and a beta of 1.35. D.R. Horton has a 1-year low of $130.40 and a 1-year high of $170.79. The company’s 50 day moving average price is $140.80 and its two-hundred day moving average price is $147.77.

D.R. Horton Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 12th will be paid a dividend of $0.50 per share. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. D.R. Horton’s dividend payout ratio is 17.13%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Truist Financial dropped their price target on D.R. Horton from $150.00 to $140.00 and set a “hold” rating on the stock in a report on Wednesday, September 16th. Keefe, Bruyette & Woods dropped their price objective on D.R. Horton from $160.00 to $152.00 in a research report on Thursday, October 22nd. Zelman & Associates upgraded shares of D.R. Horton from a “neutral” rating to an “outperform” rating in a research report on Tuesday, July 7th. Barclays decreased their price target on D.R. Horton from $130.00 to $125.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, Wells Fargo & Company decreased their target price on D.R. Horton from $145.00 to $140.00 and set an “equal weight” rating for the company in a research report on Friday, October 16th. Five research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, D.R. Horton currently has a consensus rating of “Hold” and an average price target of $152.60.

Trending Headlines about D.R. Horton

Here are the key news stories impacting D.R. Horton this week:

• Positive Sentiment: D.R. Horton declared a quarterly dividend of $0.50 per share, an 11.1% increase from the prior $0.45 payout. The annualized dividend is $2.00 per share, providing a roughly 1.4% yield. D.R. Horton dividend report
• Positive Sentiment: Fiscal fourth-quarter revenue of approximately $9.37 billion topped analyst expectations of $9.07 billion, while the company continues to control 77% of its lot supply through purchase contracts, supporting land flexibility and future construction capacity. D.R. Horton long-term investor takeaways
• Neutral Sentiment: Management projected fiscal 2027 revenue of $30 billion to $32 billion. The forecast provides visibility, but reflects a cautious operating environment shaped by high borrowing costs. D.R. Horton fiscal 2027 outlook
• Positive Sentiment: The company’s investment in robotic homebuilding could improve construction efficiency and labor productivity over the longer term, though the financial benefits are not yet clear. D.R. Horton robotics article
• Negative Sentiment: Quarterly EPS was $2.67, below estimates near $3.01-$3.03 and down from $3.04 a year earlier. Revenue also declined 3.2% year over year, indicating that stronger sales were not translating into comparable profits. D.R. Horton earnings miss
• Negative Sentiment: Higher mortgage rates weakened demand, increased cancellations and required greater buyer incentives, squeezing margins. A reported $91 million impairment charge further weighed on quarterly results. D.R. Horton Q4 earnings impairment report
• Negative Sentiment: Analyst caution intensified: RBC cut its price target to $114 and assigned an “underperform” rating, while Barclays lowered its target to $125 and retained an “equal weight” rating. D.R. Horton analyst price target changes

D.R. Horton Company Profile

D.R. Horton, Inc is a residential construction company that builds and sells single-family detached and attached homes in the United States. Its offerings include entry-level, move-up, luxury and active-adult housing, serving a range of homebuyers through brands such as D.R. Horton, Express Homes, Emerald Homes and Freedom Homes.

The company’s operations also include land acquisition and development, home financing and title services. Through subsidiaries and affiliated businesses, D.R.