Why Is D.R. Horton (DHI) Up 5.7% Since Last Earnings Report?

Core Viewpoint - D.R. Horton reported mixed results for Q4 fiscal 2025, with earnings missing estimates while revenues exceeded expectations, reflecting ongoing challenges in the housing market [2][7]. Financial Performance - Adjusted earnings per share (EPS) were $3.04, missing the Zacks Consensus Estimate of $3.29 by 7.6%, and down 22% year-over-year from $3.92 [7]. - Total revenues amounted to $9.68 billion, a decline of 3.2% year-over-year, but surpassed analysts' expectations of $9.5 billion by 1.9% [7]. - The consolidated pre-tax profit margin was 12.4%, down from 17.1% a year ago [8]. Segment Performance - Homebuilding revenues were $8.56 billion, down 4% from the prior-year quarter, with home sales at $8.54 billion, also down 4.4% year-over-year [9]. - Net sales orders improved by 5% year-over-year to 20,078, with the value of net orders increasing to $7.33 billion from $7.15 billion [10]. - Financial Services revenues decreased by 1.7% to $218.3 million [11], while Forestar contributed $670.5 million to total revenues, up from $551.4 million a year ago [12]. Annual Overview - For fiscal 2025, total revenues fell 6.9% to $34.25 billion, primarily due to a 7.3% decline in home sales revenues [13]. - Homes closed decreased by 5.4% to 84,863 units, with adjusted EPS declining by 19.3% to $11.57 [13]. Liquidity and Capital Management - Cash, cash equivalents, and restricted cash totaled $3.03 billion as of September 30, 2025, down from $4.54 billion at the end of fiscal 2024 [14]. - The company repurchased 30.7 million shares for $4.3 billion during fiscal 2025, with $3.3 billion remaining in stock repurchase authorization [16]. Future Guidance - D.R. Horton expects consolidated revenues for fiscal 2026 to be in the range of $33.5-$35 billion, with homes closed anticipated between 86,000-88,000 [17]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates revision, with the consensus estimate shifting down by 14.72% [18]. - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [20].