Analysts Estimate D.R. Horton (DHI) to Report a Decline in Earnings: What to Look Out for

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$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].