D.R. Horton, Inc. (DHI) operates as a homebuilding company. Valued at $40.3 billion by market cap, the company constructs and sells single-family homes designed primarily for the entry-level and move-up markets. DHI also provides mortgage financing and title agency services to homebuyers. The leading homebuilder is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Thursday, Apr. 17.
Ahead of the event, analysts expect DHI to report a profit of $2.69 per share on a diluted basis, down 23.6% from $3.52 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
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For the full year, analysts expect DHI to report EPS of $12.91, down 10% from $14.34 in fiscal 2024. However, its EPS is expected to rise 10.6% year over year to $14.28 in fiscal 2026.
DHI stock has underperformed the S&P 500’s ($SPX) 3.6% gains over the past 52 weeks, with shares down 22.5% during this period. Similarly, it underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 6.2% gains over the same time frame.
DHI's recent underperformance is primarily due to a drop in net sales orders and lower revenue from the financial services segment, which may have dampened investor confidence and caused the stock price to decline.
On Jan. 21, DHI shares closed down more than 2% after reporting its Q1 results. Its EPS of $2.61 exceeded Wall Street expectations of $2.40. The company’s revenue was $7.6 billion, surpassing Wall Street forecasts of $7.1 billion. DHI expects full-year revenue in the range of $36 billion to $37.5 billion.
Analysts’ consensus opinion on DHI stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, nine advise a “Strong Buy” rating, eight give a “Hold,” and two recommend a “Strong Sell.” DHI’s average analyst price target is $169.63, indicating a potential upside of 38.7% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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