Core Viewpoint - Analysts expect D.R. Horton (DHI) to report quarterly earnings of $2.69 per share, reflecting a year-over-year decline of 23.6%, with revenues projected at $8.14 billion, down 10.6% from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 2.2% over the past 30 days, indicating a collective reassessment by analysts [1][2] Revenue Projections - Analysts project 'Revenues- Home sales- Homebuilding' at $7.57 billion, a decrease of 10.6% year-over-year [4] - 'Revenues- Rental' is expected to reach $286.36 million, down 22.9% year-over-year [4] - 'Revenues- Financial Services' are projected at $203.24 million, indicating a decline of 9.9% year-over-year [4] Geographic Revenue Estimates - 'Geographic Revenues- Homebuilding- Northwest' is expected to be $608.79 million, down 18% year-over-year [5] - 'Geographic Revenues- Homebuilding- North' is projected at $1.01 billion, reflecting an increase of 17.7% year-over-year [5] - 'Geographic Revenues- Homebuilding- Southwest' is estimated at $1.15 billion, down 10.6% from the previous year [6] - 'Geographic Revenues- Homebuilding- South Central' is expected to be $1.62 billion, indicating a decline of 17.5% year-over-year [6] Sales and Orders - Analysts predict 'Homes Closed' to total 20,340, down from 22,548 in the same quarter last year [6] - 'Net sales order - Homes sold' is expected to be 26,314, slightly lower than the previous year's 26,456 [7] - The 'Average selling price - Homes closed' is projected at $371.18 million, compared to $375.50 million in the same quarter last year [7] - The estimated 'Sales order backlog - Homes in backlog' is 17,165, down from 17,873 in the same quarter last year [8] Stock Performance - Over the past month, D.R. Horton shares have returned -5.5%, compared to the Zacks S&P 500 composite's -3.6% [8]

Core Viewpoint - The market anticipates a year-over-year decline in D.R. Horton's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - D.R. Horton is expected to report quarterly earnings of $2.69 per share, reflecting a year-over-year decrease of 23.6% [3]. - Revenues are projected to be $8.14 billion, down 10.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.16% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.23% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has shown a nearly 70% success rate in predicting earnings surprises [8]. Historical Performance - In the last reported quarter, D.R. Horton exceeded the expected earnings of $2.40 per share by delivering $2.61, resulting in a surprise of +8.75% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - D.R. Horton does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making investment decisions ahead of the earnings release [16].

Group 1: Company Performance - D.R. Horton (DHI) shares increased by 4.6% to close at $127.87, supported by solid trading volume, contrasting with an 8.7% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $2.69 per share, reflecting a year-over-year decline of 23.6%, with revenues anticipated at $8.14 billion, down 10.6% from the previous year [2] - The consensus EPS estimate for D.R. Horton has been revised 0.6% lower in the last 30 days, indicating a negative trend in earnings estimate revisions [4] Group 2: Industry Insights - Homebuilding stocks, including D.R. Horton, surged due to favorable policy outcomes, specifically tariff exceptions for Canada and Mexico, which the National Association of Home Builders described as a "major win" for the industry [2] - D.R. Horton is part of the Zacks Building Products - Home Builders industry, where PulteGroup (PHM) also operates, closing 3.6% higher at $101.24, but has seen a -9.7% return in the past month [4] - PulteGroup's consensus EPS estimate remains unchanged at $2.48, representing a year-over-year change of -13.6%, and it currently holds a Zacks Rank of 4 (Sell) [5]

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Core Viewpoint - The escalation of trade tensions due to new tariffs imposed by the U.S. on Canada, Mexico, and China is expected to significantly impact various sectors, leading to increased costs for consumers and potential disruptions in the global economy [1][4]. Automobiles - The automobile sector will be heavily affected, with Canada and Mexico accounting for approximately 47% of U.S. auto imports and 54% of car part imports [6]. - U.S. carmakers could see a reduction of 10-25% in their annual EBITDA due to the new tariffs, with potential increases of up to $12,000 in the price of new cars [7]. - ETFs like First Trust S-Network Future Vehicles & Technology ETF (CARZ) are likely to face pressure [7]. Agriculture - The agricultural export sector, valued at $191 billion, is threatened by the tariffs, particularly affecting imports of grains, meats, and dairy products from Canada and Mexico [8]. - The tariffs are expected to increase grocery prices, especially since Mexico is a key supplier of various produce to the U.S. [9]. - The Invesco DB Agriculture Fund (DBA) is anticipated to experience rough trading conditions [9]. Homebuilding - Tariffs will raise the costs of building materials, leading to a projected increase of 4-6% in homebuilding costs over the next year, which will negatively impact profitability [10]. - Companies like D.R. Horton (DHI), Toll Brothers (TOL), and Lennar (LEN), along with ETFs such as iShares U.S. Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB), will be affected [10][11]. Aerospace - The aerospace industry will face increased production costs due to retaliatory tariffs from major buyers like China, Mexico, and Canada [12]. - Companies such as Boeing (BA) and Airbus, along with suppliers like Spirit AeroSystems and Hexcel, will see higher raw material costs [12]. - The iShares U.S. Aerospace & Defense ETF (ITA) is likely to be negatively impacted [12]. Retail - Major retailers, including Walmart (WMT), Target (TGT), Best Buy (BBY), and Costco (COST), are expected to face higher prices due to tariffs on consumer goods sourced from China and Mexico [13]. - Over 80% of toys sold in the U.S. are made in China, making retailers vulnerable to increased costs [14]. - Walmart's grocery business could also see rising costs, as Mexico supplies a significant portion of U.S. fruit and vegetable imports [14]. Energy - The energy sector will experience increased costs due to a 10% tariff on Canadian energy exports, which could raise prices for heating, electricity, and fuel for American consumers [15]. - ETFs like United States Natural Gas Fund (UNG) and Energy Select Sector SPDR Fund (XLE) are expected to be adversely affected [15].

Group 1 - The company aims to invest in firms with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [1] - The investment strategy involves managing a concentrated portfolio to avoid underperformers while maximizing exposure to high-potential winners [1] - The company plans to publish articles on selected companies approximately three times a week, with detailed quarterly follow-ups and ongoing updates [1] Group 2 - The analyst has no current stock, option, or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by any business relationships with the companies discussed [2]

Core Insights - Elliott Gue is recognized as a leading expert in the energy sector, with extensive experience and a strong educational background in the field [1] - The Energy & Income Advisor, launched by Elliott Gue in October 2012, focuses on identifying profitable investment opportunities in the energy sector, including growth stocks and high-yielding utilities [1] Group 1 - Elliott Gue has dedicated over a decade to understanding the energy industry through various means such as attending conferences and engaging with management teams [1] - The publication launched by Elliott Gue provides in-depth analysis and rational assessments of investment opportunities in the energy sector [1] - Roger Conrad contributes additional analysis on master limited partnerships and Canadian energy stocks to the Energy & Income Advisor [1]

Company Performance - D.R. Horton (DHI) closed at $126.42, showing a +0.35% change from the previous day, outperforming the S&P 500's loss of 0.5% [1] - The stock has decreased by 11.85% over the past month, which is worse than the Construction sector's decline of 10.1% and the S&P 500's loss of 0.47% [1] Upcoming Earnings - D.R. Horton is set to release its earnings report on April 17, 2025, with an expected EPS of $2.74, reflecting a 22.16% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $8.16 billion, down 10.42% from the previous year [2] Full-Year Estimates - The full-year Zacks Consensus Estimates predict earnings of $13.04 per share and revenue of $36.71 billion, indicating year-over-year changes of -9.07% and -0.24%, respectively [3] Analyst Estimates - Recent changes in analyst estimates for D.R. Horton suggest a shifting business landscape, with positive revisions indicating a favorable outlook on the company's health and profitability [4] Zacks Rank - D.R. Horton currently holds a Zacks Rank of 5 (Strong Sell), with a 2.6% decrease in the Consensus EPS estimate over the last 30 days [6] Valuation Metrics - The company's Forward P/E ratio stands at 9.66, which is higher than the industry average of 8.22 [7] - D.R. Horton's PEG ratio is currently 0.53, compared to the Building Products - Home Builders industry's average PEG ratio of 0.92 [8] Industry Context - The Building Products - Home Builders industry ranks in the bottom 3% of all industries, with a Zacks Industry Rank of 244 [9]

Core Viewpoint - D.R. Horton reported mixed financial results for Q1 fiscal 2025, with earnings and revenues beating estimates but declining year-over-year, raising questions about future performance amid a challenging housing market [2][5][14]. Financial Performance - Adjusted earnings for Q1 were $2.61 per share, exceeding the Zacks Consensus Estimate of $2.40 by 8.8%, but down 7.4% from $2.82 a year ago [5]. - Total revenues reached $7.6 billion, a decrease of 1.5% year-over-year, yet above analysts' expectations of $7.13 billion [5]. - The consolidated pre-tax profit margin was 14.6%, down from 16.1% in the previous year [6]. Segment Performance - Homebuilding revenues were $7.17 billion, down 1.8% from the prior year, with home sales also declining by 1.8% to $7.15 billion [7]. - Home closings decreased by 1% to 19,059 homes, while net sales orders fell by 1% to 17,837 homes, with the value of net orders down 2% to $6.7 billion [7]. - The order backlog at the end of Q1 was 11,003 homes, down 21% year-over-year, with a backlog value of $4.3 billion [8]. Liquidity and Capital Management - D.R. Horton reported cash and cash equivalents of $3.07 billion as of December 31, 2024, down from $4.54 billion at the end of fiscal 2024, with total liquidity at $6.5 billion [10]. - The company had $5.1 billion in debt, resulting in a debt to total capital ratio of 17% [11]. - D.R. Horton repurchased 6.8 million shares for $1.1 billion in Q1, with $2.5 billion remaining in stock repurchase authorization [12]. Guidance and Market Outlook - For fiscal 2025, D.R. Horton expects consolidated revenues between $36 billion and $37.5 billion, with homes closed anticipated to be between 90,000 and 92,000 units [13]. - Recent estimates have trended downward, with a consensus estimate shift of -14.28%, leading to a Zacks Rank of 5 (Strong Sell) for the stock [14][16].

Core Insights - The United States is facing a significant issue with the lack of affordable housing, particularly in the single-family residence sector, despite an increase in apartment availability [1] Group 1: Housing Market Dynamics - There is a surplus of apartments entering the market, but the starts and completions for single-family homes have not kept pace [1]