D.R. Horton (NYSE:DHI) Releases Earnings Results, Misses Expectations By $0.32 EPS

D.R. Horton (NYSE:DHI) posted its quarterly earnings data on Thursday. The construction company reported $2.67 EPS for the quarter, missing analysts’ consensus estimates of $2.99 by ($0.32), Zacks reports. The firm had revenue of $9.37 billion during the quarter, compared to the consensus estimate of $9.05 billion. D.R. Horton had a return on equity of 12.47% and a net margin of 9.15%. The firm’s quarterly revenue was down 3.2% on a year-over-year basis. During the same period in the prior year, the firm posted $3.04 EPS.

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 Trading Up 2.3%

Shares of NYSE:DHI traded up $3.25 during mid-day 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 one year low of $130.40 and a one year high of $170.79. The firm has a fifty day moving average price of $140.80 and a 200 day moving average price of $147.77. The company has a market capitalization of $40.91 billion, a PE ratio of 13.61, a price-to-earnings-growth ratio of 2.23 and a beta of 1.35.

D.R. Horton Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Thursday, November 12th will be paid a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Thursday, November 12th. This is a positive change from D.R. Horton’s previous quarterly dividend of $0.45. D.R. Horton’s dividend payout ratio is currently 17.13%.

Wall Street Analysts Forecast Growth

DHI has been the subject of several recent analyst reports. Truist Financial dropped their price objective on shares of D.R. Horton from $150.00 to $140.00 and set a “hold” rating for the company in a report on Wednesday, September 16th. Citigroup reduced their price target on shares of D.R. Horton from $160.00 to $150.00 and set a “neutral” rating on the stock in a research report on Thursday, October 15th. BTIG Research restated a “buy” rating and issued a $174.00 price objective (down from $184.00) on shares of D.R. Horton in a research report on Tuesday, September 22nd. Wells Fargo & Company dropped their target price on shares of D.R. Horton from $145.00 to $140.00 and set an “equal weight” rating for the company in a research note on Friday, October 16th. Finally, Melius Research initiated coverage on shares of D.R. Horton in a research report on Tuesday, October 6th. They set a “sell” rating and a $128.00 target price on the stock. Five investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, D.R. Horton presently has an average rating of “Hold” and a consensus target price of $153.27.

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

About D.R. Horton

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.