D.R. Horton (NYSE:DHI) Releases Quarterly Earnings Results

Key Points

• Fourth-quarter EPS was $2.67, missing the $2.99 analyst consensus and declining from $3.04 a year earlier; revenue of $9.37 billion exceeded expectations but fell 3.2% year over year.
• Higher mortgage rates weakened demand, with net orders down 7% and cancellations rising to 23%. Gross margin fell to 19.5%, while fiscal 2027 guidance points to continued pressure, including $30–$32 billion in revenue and an expected 18%–18.5% near-term margin.
• D.R. Horton raised its quarterly dividend 11% to $0.50 per share and plans roughly $3 billion in share repurchases and $500 million in dividends during fiscal 2027, supported by strong liquidity and cash generation.

D.R. Horton (NYSE:DHI - Get Free Report) posted its quarterly earnings data on Thursday. The construction company reported $2.67 earnings per share for the quarter, missing analysts' consensus estimates of $2.99 by ($0.32), Zacks reports. D.R. Horton had a return on equity of 12.47% and a net margin of 9.15%. The company had revenue of $9.37 billion for the quarter, compared to analysts' expectations of $9.05 billion. During the same period in the prior year, the company posted $3.04 EPS. The firm's revenue 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 Stock Up 2.3%

DHI traded up $3.25 during trading on Thursday, hitting $146.25. The company had a trading volume of 5,253,045 shares, compared to its average volume of 3,193,054. The company has a debt-to-equity ratio of 0.29, a current ratio of 6.43 and a quick ratio of 1.04. D.R. Horton has a 1-year low of $130.40 and a 1-year high of $170.79. The business has a 50-day moving average of $140.80 and a 200-day moving average of $147.77. The company has a market cap of $40.91 billion, a PE ratio of 13.61, a P/E/G ratio of 2.23 and a beta of 1.35.

D.R. Horton Increases Dividend

The firm also recently announced 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 an increase from D.R. Horton's previous quarterly dividend of $0.45. The ex-dividend date is Thursday, November 12th. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. D.R. Horton's dividend payout ratio (DPR) is currently 17.13%.

Key Headlines Impacting D.R. Horton

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

• Positive Sentiment: D.R. Horton raised its quarterly dividend 11.1% to $0.50 per share, or $2.00 annualized, signaling confidence in cash generation and returning more capital to shareholders. The dividend carries an approximate 1.4% yield. The ex-dividend date is November 12, with payment scheduled for November 19.
• Positive Sentiment: Fiscal fourth-quarter revenue reached $9.37 billion, above the $9.05 billion consensus estimate, suggesting the builder maintained sales volume despite challenging financing conditions. D.R. Horton Warns of Continued Mortgage Pressure in Housing Demand
• Neutral Sentiment: Management expects fiscal 2027 revenue of approximately $30 billion to $32 billion. While this provides visibility, the range reflects a housing market still constrained by elevated mortgage rates and may disappoint investors seeking stronger growth. D.R. Horton outlines fiscal 2027 revenue of $30B-$32B
• Negative Sentiment: Fourth-quarter adjusted earnings of $2.67 per share missed the $2.99 consensus estimate and declined from $3.04 a year earlier. Revenue also fell 3.2% year over year. D.R. Horton misses Q4 earnings estimates
• Negative Sentiment: Higher mortgage rates weakened orders, increased cancellations and pressured demand. Elevated buyer incentives compressed margins, while a reported $91 million impairment further weighed on quarterly results. Management warned that mortgage-related pressure could continue through fiscal 2027. D.R. Horton profit down as mortgage rates weigh

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on DHI. Royal Bank Of Canada lowered their target price on shares of D.R. Horton from $125.00 to $119.00 and set an "underperform" rating for the company in a research note on Thursday, October 15th. Stonex Financia raised D.R. Horton to a "hold" rating in a report on Thursday, October 15th. Barclays dropped their target price on shares of D.R. Horton from $141.00 to $130.00 and set an "equal weight" rating on the stock in a research report on Tuesday, October 6th. Weiss Ratings raised D.R. Horton from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. Finally, Citigroup decreased their price objective on D.R. Horton from $160.00 to $150.00 and set a "neutral" rating for the company in a report on Thursday, October 15th. Five analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $153.27.

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.

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