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

D.R. Horton (NYSE:DHI) released its quarterly earnings data on Thursday. The construction company reported $2.67 earnings per share for the quarter, missing the consensus estimate of $2.99 by ($0.32), Zacks reports. The business had revenue of $9.37 billion for the quarter, compared to analyst estimates of $9.05 billion. D.R. Horton had a return on equity of 12.47% and a net margin of 9.15%. The business’s quarterly revenue was down 3.2% on a year-over-year basis. During the same quarter in the previous year, the company 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 Stock Performance

Shares of DHI traded up $3.25 on Thursday, reaching $146.25. 5,253,045 shares of the company’s stock traded hands, compared to its average volume of 3,193,054. The company has a current ratio of 6.43, a quick ratio of 1.04 and a debt-to-equity ratio of 0.29. The stock has a market cap of $40.91 billion, a PE ratio of 13.61, a PEG ratio of 2.23 and a beta of 1.35. The stock’s 50 day simple moving average is $140.80 and its two-hundred day simple moving average is $147.77. D.R. Horton has a 52-week low of $130.40 and a 52-week high of $170.79.

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 issued a $0.50 dividend. This is a boost from D.R. Horton’s previous quarterly dividend of $0.45. This represents a $2.00 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Thursday, November 12th. D.R. Horton’s dividend payout ratio is currently 17.13%.

D.R. Horton News Roundup

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 Analyst Weigh In

DHI has been the subject of several analyst reports. Truist Financial lowered their price objective on D.R. Horton from $150.00 to $140.00 and set a “hold” rating for the company in a research note on Wednesday, September 16th. Weiss Ratings raised D.R. Horton from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 15th. Melius Research initiated coverage on D.R. Horton in a research report on Tuesday, October 6th. They issued a “sell” rating and a $128.00 price target for the company. Zelman & Associates upgraded D.R. Horton from a “neutral” rating to an “outperform” rating in a research note on Tuesday, July 7th. Finally, Bank of America dropped their price objective on D.R. Horton from $150.00 to $145.00 in a research note on Wednesday, October 7th. Five research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, D.R. Horton has an average rating of “Hold” and a consensus 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.