D.R. Horton (NYSE:DHI) reported worse-than-expected fourth-quarter EPS and sales results on Tuesday.
Sales fell 5% year-over-year to $10.0 billion, missing the consensus of $10.2 billion. Net sales orders increased 1% to 19,035 homes and decreased 2% in value at $7.1 billion. EPS was $3.92, missing the consensus of $4.17.
D.R. Horton expects revenue of $36.0 billion – $37.5 billion versus the consensus of $39.4 billion. It expects homes closed to be 90,000 homes-92,000 homes for the year. DHI projects FY25 operating cash flow to be greater than fiscal 2024.
David Auld, Executive Chairman, said, "While mortgage rates have decreased from their highs earlier this year, many potential homebuyers expect rates to be lower in 2025. We believe that rate volatility and uncertainty are causing some buyers to stay on the sidelines in the near term."
D.R. Horton shares gained 2% to trade at $170.60 on Wednesday.
These analysts made changes to their price targets on D.R. Horton following earnings announcement.
- UBS analyst John Lovallo maintained D.R. Horton with a Buy and lowered the price target from $217 to $214.
- Evercore ISI Group analyst Stephen Kim maintained the stock with an Outperform and cut the price target from $218 to $204.
- Wells Fargo analyst Sam Reid maintained D.R. Horton with an Overweight and lowered the price target from $220 to $190.
- RBC Capital analyst Mike Dahl maintained the stock with an Underperform and lowered the price target from $154 to $145.
- Citigroup analyst Anthony Pettinari maintained the stock with a Neutral and cut the price target from $186 to $185.
Considering buying DHI stock? Here's what analysts think:
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