Core Concept - The article discusses how stock price-driven narratives can overshadow fundamental realities, using D.R. Horton, Inc. (DHI) as a case study to illustrate the disconnect between market perception and actual company performance [2][4]. Group 1: D.R. Horton, Inc. (DHI) Performance - DHI, a major player in the homebuilding sector, experienced a significant stock price decline of 26.5% while the S&P 500 rose by 15.6%, driven by a narrative that homebuilders were struggling due to rising mortgage rates [8][5]. - Despite the negative narrative, DHI maintained a strong balance sheet and income statement metrics, allowing it to offer incentives to homebuyers that the secondary housing market could not match [12][13]. - DHI's net sales orders were flat year-over-year and up 3% sequentially, exceeding guidance, with a gross margin of 21.8%, which was higher than analyst expectations [29]. Group 2: Market Dynamics and Narratives - The article highlights how narratives can amplify negative perceptions, leading to stock price movements that do not reflect the underlying fundamentals of a company [3][10]. - It emphasizes that while homebuilders faced challenges, the specific factors affecting DHI were often overlooked, leading to a mispricing of the stock [11][12]. - The volatility of DHI's stock price, falling 27% in six months, indicates that it was trading on narrative rather than fundamentals, which is atypical for a stable company [25][20]. Group 3: Broader Industry Context - The homebuilding industry is cyclical, but DHI has demonstrated resilience and adaptability, with a consistent rise in book value since the Financial Crisis [21][24]. - The article suggests that the homebuilding sector's challenges, such as rising construction costs and reduced buyer pools, are typical and manageable within the industry's historical context [15][39]. - DHI's ability to operate effectively in various market conditions positions it favorably for future growth, despite current headwinds [21][39].

Group 1 - The earnings reports from home builders D.R. Horton (DHI) and Pulte Home (PHM) were not particularly remarkable, but they exceeded market expectations [1] - Both builders reported results that were not as bad as feared and reaffirmed strong market positions [1] Group 2 - The article highlights the importance of expectations in the financial markets, particularly in the context of earnings reports [1]

Core Viewpoint - DR Horton Inc. (DHI) experienced a significant stock increase of 17.02%, marking its best single-day performance since March 2009 [1]. Financial Performance - The company reported third-quarter earnings per share (EPS) and orders that exceeded expectations [2].

Stock Performance - D.R Horton and PulteGroup shares experienced a rise following the release of their latest quarterly results [1] - The quarterly results of both homebuilders exceeded expectations [1]

Core Viewpoint - D.R. Horton, Inc. (DHI) reported better-than-expected third-quarter fiscal 2025 results, with earnings and total revenues exceeding Zacks Consensus Estimate but showing a decline year-over-year [1][5]. Financial Performance - Adjusted earnings were $3.36 per share, surpassing the Zacks Consensus Estimate of $2.90 by 15.9%, but down 18% from $4.10 a year ago [5][10]. - Total revenues reached $9.23 billion, a decrease of 7% year-over-year, yet exceeding analysts' expectations of $8.78 billion by 5.1% [6][10]. - The consolidated pre-tax profit margin was 14.7%, down from 18.1% a year ago [6]. Segment Performance - Homebuilding revenues were $8.58 billion, down 7% from the prior-year quarter, with home sales at $8.56 billion, a 7.3% decline year-over-year [7]. - Home closings decreased by 4% to 23,160 homes [7]. - Financial Services revenues fell 6% year-over-year to $227.8 million [9]. - The Rental business generated revenues of $380.7 million, down from $413.7 million a year ago [11]. Market Conditions - The housing market remains soft due to declining consumer confidence and affordability concerns, impacting home closings and average selling prices [2]. - The backlog of homes decreased by 16% year-over-year to 14,075 homes, with the backlog value down 19% to $5.3 billion [8][10]. Operational Insights - The company maintains strong liquidity with cash and equivalents totaling $2.66 billion and total liquidity of $5.5 billion [12]. - D.R. Horton has a disciplined approach to capital allocation and flexible lot supply, positioning it to adapt to market conditions [4]. Guidance and Future Outlook - D.R. Horton updated its fiscal 2025 guidance, now expecting consolidated revenues between $33.7 billion and $34.2 billion, down from the previous range of $33.3 billion to $34.8 billion [15]. - Homes closed are anticipated to be between 85,000 and 85,500, compared to the previous expectation of 85,000 to 87,000 [15].

Group 1 - PulteGroup Inc (NYSE:PHM) shares increased by 9.4% to $118.81 after exceeding second-quarter earnings and revenue estimates, aided by buyer incentives [1] - Wedbush raised PulteGroup's price target from $135 to $150 following the earnings report [1] - PulteGroup's stock is up 8.2% year-to-date and has surpassed resistance at the 320-day moving average, reaching its highest levels since late January [1] Group 2 - D.R. Horton Inc (NYSE:DHI) shares rose by 13.8% to $149.47, marking its best day since April 2020, after reporting better-than-expected fiscal third-quarter earnings and revenue [4] - D.R. Horton is now showing a 7.3% year-to-date gain and has broken into positive territory for 2025 [4] - Options trading for D.R. Horton is significantly higher, with 15,000 calls and 11,000 puts traded, which is eight times the typical volume [5]

D.R. HORTON, INC., AMERICA'S BUILDER, REPORTS FISCAL 2025 THIRD QUARTER EARNINGS AND DECLARES QUARTERLY DIVIDEND OF $0.40 PER SHARE ARLINGTON, Texas (Business Wire) - July 22, 2025 Fiscal 2025 Third Quarter Highlights D.R. Horton, Inc. (NYSE:DHI), America's Builder, today reported that net income per diluted share attributable to D.R. Horton for its third fiscal quarter ended June 30, 2025 decreased 18% to $3.36 compared to $4.10 in the same quarter of fiscal 2024. Net income attributable to D.R. Horton in ...

Q2 2025 Highlights - Lots Contracted for Sale increased by 41% from Q2 FY 2024 to 25,400 lots[14] - Lot Position increased by 11% from Q2 FY 2024 to 105,900 lots[14] - Book Value Per Share increased by 10% from Q2 FY 2024 to $3236[14] - Revenues increased 5% to $351 million on 3,411 lots sold[17] - Real estate book value increased 30% year-over-year to $28 billion at March 31, 2025[17] Financial Position - Earnings per diluted share of $062 on net income of $316 million[17] - Pre-tax income of $407 million[17] - Net debt to capital of 298%, with total liquidity of $792 million[17] - The company issued $500 million of 650% senior unsecured notes due 2033[17] - The company completed a tender offer to purchase $3294 million of existing 385% senior unsecured notes due 2026[17] Strategic Goals and Market Position - Forestar targets a return on average inventory of >15% and return of phase 1 investment within 36 months[21] - Pre-tax profit margin of 151% for Q2 TTM FY 2025[22] - Forestar is targeting 5% market share within the US single-family residential lot development industry[49] - Owned lots under contract to sell increased 41% year-over-year to 25,400 lots, representing 37% of the owned lot position[84]

D.R. Horton (DHI) reported $9.23 billion in revenue for the quarter ended June 2025, representing a year-over- year decline of 7.4%. EPS of $3.36 for the same period compares to $4.10 a year ago. Here is how D.R. Horton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for D.R. Horton here>>> Shares of D.R. Horton have returned +2% over the past month versus the Zacks S&P 500 composite's +5.9% change. The ...

Shares of D.R. Horton rose the most in more than five years as the homebuilder posted earnings that beat expectations even as the US housing market remains sluggish https://t.co/l5iHMzVWXg ...