D.R. Horton (NYSE:DHI) Posts Earnings Results, Beats Estimates By $0.09 EPS

D.R. Horton (NYSE:DHI - Get Free Report) posted its earnings results on Tuesday. The construction company reported $2.24 earnings per share for the quarter, beating the consensus estimate of $2.15 by $0.09, Zacks reports. The firm had revenue of $7.56 billion during the quarter, compared to the consensus estimate of $9.22 billion. D.R. Horton had a net margin of 9.51% and a return on equity of 12.94%. The firm's revenue for the quarter was down 2.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.58 EPS.

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

• The company delivered a solid quarter with $867M consolidated pre-tax income on $7.6B revenue and a pre-tax margin of 11.5% above guidance, while net sales orders rose 11% YoY to 24,992 homes.
• Inventory and cycle-time improvements were material: completed unsold homes fell 35% YoY and median start-to-close cycle time improved by nearly a month, enabling faster turns and lower carrying costs.
• Sales incentives remain elevated and are expected to stay high for the rest of the year (roughly ~10% of revenues), with ~73% of closings using buydowns — a margin headwind until rates or demand normalize.
• Construction cost trends are improving (stick-and-brick savings offsetting higher lot costs, which were up ~4% YoY), and management expects Q3 home-sales gross margin around 19.7%+ as additional savings flow through.
• Capital allocation remains shareholder-friendly: the company returned $4B over the past 12 months, repurchased $904M in Q2, declared a steady dividend, and maintains FY guidance including ~$3B+ operating cash flow and ~$2.5B in buybacks.

D.R. Horton Price Performance

D.R. Horton stock opened at $161.02 on Thursday. The company has a debt-to-equity ratio of 0.27, a current ratio of 6.46 and a quick ratio of 0.98. The stock has a market capitalization of $46.65 billion, a PE ratio of 15.09, a price-to-earnings-growth ratio of 2.61 and a beta of 1.44. The business has a 50 day simple moving average of $148.29 and a 200-day simple moving average of $150.60. D.R. Horton has a 12 month low of $114.17 and a 12 month high of $184.54.

D.R. Horton Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Shareholders of record on Thursday, May 7th will be paid a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, May 7th. D.R. Horton's dividend payout ratio (DPR) is 16.35%.

Key Headlines Impacting D.R. Horton

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

• Positive Sentiment: Q2 operating positives: management reported robust net sales orders, tighter finished-inventory and reiterated full-year revenue guidance; that underlying demand/market-share message helped push the stock higher after results. Earnings Call Highlights
• Positive Sentiment: Dividend declared: DHI announced a quarterly dividend of $0.45 per share (record May 7 / pay May 14), which supports income-focused holders. Business Wire: Dividend
• Neutral Sentiment: UBS raised its price target sharply to $206 and issued a Buy, signaling sizable upside from current levels and providing bullish analyst support. Benzinga: UBS raises PT to $206
• Neutral Sentiment: Mixed/tempered analyst moves: Wells Fargo lifted its PT to $170 (Equal Weight) while Barclays and Truist also raised PTs but still left ratings at Equal Weight/Hold—these moves narrow downside for some but don’t create unanimous buy-side momentum. Benzinga: Multiple PT updates
• Neutral Sentiment: Analysts generally updated forecasts after Q2: some raised estimates and price targets following the call, reflecting better-than-feared order momentum even as revenue trends were soft. Benzinga: Analysts increase forecasts
• Negative Sentiment: RBC raised its PT but kept an Underperform rating (PT $123), signaling some strategists still see meaningful downside relative to current shares—this conflicting message can pressure the stock. TickerReport: RBC PT/rating
• Negative Sentiment: Fundamentals headwinds: revenue missed some street estimates and management cited affordability pressures that have forced elevated buyer incentives—these items weigh on margins and the demand outlook. MarketBeat: Earnings summary
• Negative Sentiment: Broader market/headline risk: risk-off in U.S. equities (geopolitical headlines) reduced appetite for cyclical names like homebuilders, contributing to today's pullback. Yahoo Finance: Market News

Insider Transactions at D.R. Horton

In related news, SVP Aron M. Odom sold 260 shares of the firm's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $167.55, for a total value of $43,563.00. Following the completion of the sale, the senior vice president owned 6,457 shares in the company, valued at $1,081,870.35. This trade represents a 3.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On D.R. Horton

A number of large investors have recently modified their holdings of the business. First Manhattan CO. LLC. boosted its stake in shares of D.R. Horton by 2.0% in the fourth quarter. First Manhattan CO. LLC. now owns 3,546 shares of the construction company's stock valued at $511,000 after buying an additional 70 shares in the last quarter. Faithward Advisors LLC raised its position in D.R. Horton by 6.3% in the fourth quarter. Faithward Advisors LLC now owns 1,417 shares of the construction company's stock worth $204,000 after acquiring an additional 84 shares in the last quarter. UniSuper Management Pty Ltd lifted its holdings in D.R. Horton by 0.3% in the fourth quarter. UniSuper Management Pty Ltd now owns 26,587 shares of the construction company's stock valued at $3,829,000 after acquiring an additional 85 shares during the period. Axxcess Wealth Management LLC boosted its position in shares of D.R. Horton by 6.3% during the 4th quarter. Axxcess Wealth Management LLC now owns 1,525 shares of the construction company's stock worth $220,000 after purchasing an additional 91 shares in the last quarter. Finally, Jacobi Capital Management LLC boosted its position in shares of D.R. Horton by 1.2% during the 4th quarter. Jacobi Capital Management LLC now owns 7,915 shares of the construction company's stock worth $1,140,000 after purchasing an additional 93 shares in the last quarter. 90.63% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently commented on DHI. Royal Bank Of Canada raised their price target on D.R. Horton from $117.00 to $123.00 and gave the stock an "underperform" rating in a research report on Wednesday. Citizens Jmp reissued a "market perform" rating on shares of D.R. Horton in a research note on Wednesday, January 7th. Seaport Research Partners restated a "neutral" rating on shares of D.R. Horton in a report on Tuesday, April 7th. Barclays lifted their target price on D.R. Horton from $128.00 to $140.00 and gave the company an "equal weight" rating in a research report on Wednesday. Finally, UBS Group increased their price target on shares of D.R. Horton from $193.00 to $206.00 and gave the stock a "buy" rating in a research report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $167.08.

D.R. Horton Company Profile

D.R. Horton, Inc is a national homebuilding company that designs, constructs and sells new residential properties across the United States. The company's core operations focus on building single-family detached homes, townhomes and condominiums for a range of buyer segments. In addition to home construction and sales, D.R. Horton provides complementary services through subsidiaries that support the mortgage, title and closing processes for its customers, enabling integrated transaction workflows from inventory development to home delivery.

Founded in 1978 by Donald R.