Homebuilder D.R. Horton (NYSE: DHI) will be announcing earnings results this Tuesday before market hours. Here’s what investors should know.
D.R. Horton beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $9.68 billion, down 3.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Is D.R. Horton a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting D.R. Horton’s revenue to decline 12.4% year on year to $6.67 billion, a further deceleration from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.92 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. D.R. Horton has missed Wall Street’s revenue estimates twice over the last two years.
Looking at D.R. Horton’s peers in the industrials segment, some have already reported their Q4 results, giving us a hint as to what we can expect. KB Home’s revenues decreased 15.3% year on year, beating analysts’ expectations by 2.3%, and Lennar reported a revenue decline of 5.8%, topping estimates by 2.6%. KB Home traded down 8.5% following the results while Lennar was also down 4.4%.
Read our full analysis of KB Home’s results here and Lennar’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 8.8% on average over the last month. D.R. Horton is up 7.3% during the same time and is heading into earnings with an average analyst price target of $162.36 (compared to the current share price of $155.78).
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