D.R. Horton (NYSE:DHI) Posts Earnings Results, Misses Estimates By $0.34 EPS

D.R. Horton (NYSE:DHI) announced its earnings results on Thursday. The construction company reported $2.67 earnings per share for the quarter, missing analysts’ consensus estimates of $3.01 by ($0.34), Zacks reports. The business had revenue of $9.37 billion during the quarter, compared to the consensus estimate of $9.07 billion. D.R. Horton had a return on equity of 11.93% and a net margin of 8.74%. D.R. Horton’s revenue was down 3.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.04 earnings per share.

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 Performance

Shares of DHI stock traded down $0.60 during mid-day trading on Friday, reaching $145.93. 2,991,198 shares of the company’s stock traded hands, compared to its average volume of 3,254,190. D.R. Horton has a 12 month low of $130.40 and a 12 month high of $170.79. The firm has a 50 day moving average price of $140.76 and a two-hundred day moving average price of $147.70. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.04 and a current ratio of 6.01. The firm has a market capitalization of $40.82 billion, a PE ratio of 14.39, a price-to-earnings-growth ratio of 2.28 and a beta of 1.35.

D.R. Horton Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Thursday, November 12th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Thursday, November 12th. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.45. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. D.R. Horton’s payout ratio is 19.72%.

D.R. Horton News Summary

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

• Positive Sentiment: D.R. Horton declared a quarterly dividend of $0.50 per share, an 11.1% increase from $0.45, bringing the annualized dividend to $2.00 and signaling continued confidence in cash generation.
• Positive Sentiment: Fourth-quarter revenue reached $9.37 billion, exceeding the $9.07 billion analyst estimate. The company also controls 77% of its lot supply through purchase contracts, which may support future construction flexibility. D.R. Horton: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: The company is investing in robotic homebuilding, a potential long-term productivity and cost advantage, although the financial impact is not yet clear. Inside giant homebuilder D.R. Horton’s bet on robotic homebuilding
• Negative Sentiment: Fiscal fourth-quarter earnings per share were $2.67, below the $3.01 consensus and down from $3.04 a year earlier. Revenue also declined 3.2% year over year, while a reported $91 million impairment further clouded results. D.R. Horton’s Q4 Earnings Miss on Weak Housing Demand, Sales Beat
• Negative Sentiment: Management warned that elevated mortgage rates are weakening demand, increasing cancellations and forcing greater buyer incentives, which is squeezing profitability. Its fiscal 2027 revenue outlook of $30 billion to $32 billion reflects a cautious operating environment. D.R. Horton Profit Down as Mortgage Rates Weigh
• Negative Sentiment: Analysts lowered their valuations: Royal Bank of Canada cut its price target to $114 and maintained an “underperform” rating, while Barclays reduced its target to $125 and kept an “equal weight” rating. The revisions reinforce concerns about earnings and housing demand.

Analyst Upgrades and Downgrades

DHI has been the topic of several recent research reports. Melius Research began coverage on shares of D.R. Horton in a report on Tuesday, October 6th. They set a “sell” rating and a $128.00 target price on the stock. Keefe, Bruyette & Woods decreased their price target on D.R. Horton from $160.00 to $152.00 in a research note on Thursday, October 22nd. Wells Fargo & Company lowered their price objective on D.R. Horton from $145.00 to $140.00 and set an “equal weight” rating for the company in a research report on Friday, October 16th. Barclays dropped their price target on shares of D.R. Horton from $130.00 to $125.00 and set an “equal weight” rating for the company in a research report on Friday. Finally, Royal Bank Of Canada dropped their price objective on D.R. Horton from $119.00 to $114.00 and set an “underperform” rating for the company in a report on Friday. Five investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, D.R. Horton has an average rating of “Hold” and an average price target of $152.60.

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.