D.R. Horton (NYSE:DHI) Announces Earnings Results, Misses Estimates By $0.28 EPS

D.R. Horton (NYSE:DHI) issued its quarterly earnings results on Tuesday. The construction company reported $3.92 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.20 by ($0.28), Briefing.com reports. The firm had revenue of $10 billion during the quarter, compared to analyst estimates of $10.22 billion. D.R. Horton had a return on equity of 20.72% and a net margin of 13.36%. The business’s revenue was down 4.7% on a year-over-year basis. During the same period in the prior year, the firm earned $4.45 earnings per share. D.R. Horton updated its FY 2025 guidance to EPS.

D.R. Horton Stock Performance

Shares of NYSE DHI traded up $2.89 during trading hours on Wednesday, reaching $170.21. 1,293,348 shares of the stock were exchanged, compared to its average volume of 2,464,430. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.30 and a current ratio of 7.22. The firm has a market capitalization of $56.05 billion, a price-to-earnings ratio of 11.40, a P/E/G ratio of 0.78 and a beta of 1.72. The stock’s fifty day simple moving average is $187.63 and its 200 day simple moving average is $165.12. D.R. Horton has a 52 week low of $102.23 and a 52 week high of $199.85.

D.R. Horton Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 19th. Stockholders of record on Tuesday, November 12th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 0.94%. The ex-dividend date is Tuesday, November 12th. This is a boost from D.R. Horton’s previous quarterly dividend of $0.30. D.R. Horton’s dividend payout ratio is 8.17%.

D.R. Horton declared that its Board of Directors has approved a stock buyback program on Thursday, July 18th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the construction company to repurchase up to 6.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Royal Bank of Canada upped their price objective on shares of D.R. Horton from $141.00 to $154.00 and gave the stock an “underperform” rating in a report on Friday, July 19th. Keefe, Bruyette & Woods lifted their price objective on D.R. Horton from $178.00 to $208.00 and gave the company an “outperform” rating in a research note on Tuesday, July 23rd. Bank of America increased their target price on D.R. Horton from $196.00 to $215.00 and gave the stock a “buy” rating in a research note on Thursday, September 19th. JMP Securities lifted their target price on D.R. Horton from $170.00 to $210.00 and gave the company a “market outperform” rating in a research report on Friday, July 19th. Finally, Barclays increased their price target on shares of D.R. Horton from $168.00 to $200.00 and gave the stock an “overweight” rating in a research report on Friday, July 19th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat, D.R. Horton has a consensus rating of “Moderate Buy” and an average target price of $185.67.

D.R. Horton Company Profile

D.R. Horton, Inc operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R.