D.R. Horton, Inc. (DHI) is set to report first quarter earnings before the market opens on Tuesday, January 20, and analysts are bracing for a softer performance compared to last year.
Wall Street expects the Arlington, Texas-based homebuilder to post earnings of $1.92 per share, a notable decline from $2.61 per share in the same quarter last year. Revenue forecasts tell a similar story, with the consensus estimate sitting at $6.65 billion versus $7.61 billion a year earlier.
The company's last earnings report on October 28 delivered a mixed bag. Revenue came in at $9.7 billion, comfortably ahead of the $9.4 billion analysts had penciled in. But earnings per share of $3.04 fell short of the $3.28 consensus, showing that top-line strength doesn't always translate to bottom-line results.
D.R. Horton shares closed up 1.1% at $161.00 on Thursday, holding relatively steady as investors await the earnings release.
What the Most Accurate Analysts Are Saying
Ahead of the earnings call, several analysts with strong track records have adjusted their outlook on D.R. Horton. Here's what they're saying:
- Citigroup analyst Anthony Pettinari kept a Neutral rating but trimmed the price target from $163 to $154 on January 8. This analyst has a 75% accuracy rate.
- Citizens analyst James McCanless downgraded the stock from Market Outperform to Market Perform on January 7. This analyst has a 68% accuracy rate.
- UBS analyst John Lovallo maintained a Buy rating while lowering the price target from $195 to $191 on January 6. This analyst has a 70% accuracy rate.
- Wells Fargo analyst Sam Reid downgraded the stock from Overweight to Equal-Weight and slashed the price target from $180 to $155 on January 6. This analyst has a 66% accuracy rate.
- Barclays analyst Matthew Bouley held an Equal-Weight rating but raised the price target from $110 to $132 on December 8. This analyst has a 68% accuracy rate.
The recent downgrades from Citizens and Wells Fargo suggest growing caution among analysts about the homebuilding sector's near-term prospects, even as some maintain optimistic long-term views. With earnings just around the corner, investors will soon see if those concerns are justified.
