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D.R. Horton Analysts Slash Their Forecasts After Weak Q4 Results
DHID.R. Horton(DHI) Benzinga·2024-10-30 18:49

Core 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 10.0billion,missingtheconsensusestimateof10.0 billion, missing the consensus estimate of 10.2 billion [1]. - EPS was reported at 3.92,belowtheconsensusof3.92, below the consensus of 4.17 [1]. - Net sales orders increased by 1% to 19,035 homes but decreased by 2% in value to 7.1billion[1].FutureProjections−D.R.Hortonexpectsrevenuefortheupcomingyeartobebetween7.1 billion [1]. Future Projections - D.R. Horton expects revenue for the upcoming year to be between 36.0 billion and 37.5billion,lowerthantheconsensusof37.5 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].AnalystRatingsandPriceTargets−UBSanalystJohnLovallomaintainedaBuyratingbutreducedthepricetargetfrom170.60 [3]. Analyst Ratings and Price Targets - UBS analyst John Lovallo maintained a Buy rating but reduced the price target from 217 to 214[4].−EvercoreISIGroup′sStephenKimkeptanOutperformratingwhileloweringthepricetargetfrom214 [4]. - Evercore ISI Group's Stephen Kim kept an Outperform rating while lowering the price target from 218 to 204[4].−WellsFargo′sSamReidmaintainedanOverweightratingandcutthepricetargetfrom204 [4]. - Wells Fargo's Sam Reid maintained an Overweight rating and cut the price target from 220 to 190[4].−RBCCapital′sMikeDahlmaintainedanUnderperformratingandloweredthepricetargetfrom190 [4]. - RBC Capital's Mike Dahl maintained an Underperform rating and lowered the price target from 154 to 145[4].−Citigroup′sAnthonyPettinarimaintainedaNeutralratingandreducedthepricetargetfrom145 [4]. - Citigroup's Anthony Pettinari maintained a Neutral rating and reduced the price target from 186 to 185[4].−TheconsensuspricetargetforD.R.Hortonis185 [4]. - The consensus price target for D.R. Horton is 166.6, with a high of 215andalowof215 and a low of 73 [5].