D.R. Horton(US:DHI) Benzingaยท2024-10-30 18:49Core Viewpoint - D.R. Horton reported disappointing fourth-quarter earnings, with sales and EPS falling short of expectations, indicating potential challenges in the housing market [1][2]. Financial Performance - Sales decreased by 5% year-over-year to $10.0 billion, missing the consensus estimate of $10.2 billion [1]. - EPS was reported at $3.92, below the consensus of $4.17 [1]. - Net sales orders increased by 1% to 19,035 homes but decreased by 2% in value to $7.1 billion [1]. Future Projections - D.R. Horton expects revenue for the upcoming year to be between $36.0 billion and $37.5 billion, lower than the consensus of $39.4 billion [2]. - The company anticipates closing between 90,000 and 92,000 homes for the year [2]. - Operating cash flow for FY25 is projected to exceed that of fiscal 2024 [2]. Market Sentiment - Executive Chairman David Auld noted that while mortgage rates have decreased, potential homebuyers are waiting for lower rates in 2025, contributing to current market hesitance [3]. - Following the earnings announcement, D.R. Horton shares rose by 2% to $170.60 [3]. Analyst Ratings and Price Targets - UBS analyst John Lovallo maintained a Buy rating but reduced the price target from $217 to $214 [4]. - Evercore ISI Group's Stephen Kim kept an Outperform rating while lowering the price target from $218 to $204 [4]. - Wells Fargo's Sam Reid maintained an Overweight rating and cut the price target from $220 to $190 [4]. - RBC Capital's Mike Dahl maintained an Underperform rating and lowered the price target from $154 to $145 [4]. - Citigroup's Anthony Pettinari maintained a Neutral rating and reduced the price target from $186 to $185 [4]. - The consensus price target for D.R. Horton is $166.6, with a high of $215 and a low of $73 [5].