Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for D.R. Horton (DHI) due to lower revenues, with a focus on how actual results will compare to estimates to influence stock price movements [1][2]. Earnings Expectations - D.R. Horton is expected to report quarterly earnings of $3.29 per share, reflecting a year-over-year decrease of 16.1%. Revenues are projected at $9.45 billion, down 5.5% from the previous year [3]. - The consensus EPS estimate has been revised 0.31% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for D.R. Horton is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.91%, complicating predictions for an earnings beat [12]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. Historical Performance - In the last reported quarter, D.R. Horton exceeded expectations with earnings of $3.36 per share against an anticipated $2.9, achieving a surprise of +15.86% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - D.R. Horton does not currently appear to be a strong candidate for an earnings beat, and investors should consider additional factors when making decisions regarding the stock ahead of the earnings release [17].

Core Insights - D.R. Horton has announced the dates for the release of its financial results for the fiscal year 2026 [1] Company Information - The announcement pertains to the financial reporting schedule of D.R. Horton, indicating a structured approach to financial transparency and communication with stakeholders [1]

Group 1 - Warren Buffett's Berkshire Hathaway has made significant investments in homebuilders, including new stakes in DR Horton Inc and Lennar Corp, and increased its stake in Lennar Class B shares by 19% [2][3] - As of the end of the third quarter, Berkshire Hathaway's total gain from these homebuilder positions is approximately $124.96 million since the end of the second quarter [3] - Berkshire Hathaway currently holds 3.1% of Lennar Class A shares, although these investments represent a small portion of the overall portfolio [3] Group 2 - The performance of Berkshire Hathaway is currently trailing the S&P 500, with year-to-date gains of 10% compared to the S&P 500's 13.3% [4] - The closing prices for the homebuilder stocks at the end of the second quarter and their current prices indicate significant appreciation, with Lennar Class A shares rising from $110.61 to $122.23, Lennar Class B from $105.25 to $114.78, and DR Horton from $128.92 to $156.74 [5] - The gains from individual homebuilder stocks include $81.91 million from Lennar Class A, $1.72 million from Lennar Class B, and $41.32 million from DR Horton [5]

Core Viewpoint - US homebuilder stocks are under scrutiny following a downgrade by Evercore ISI analyst Stephen Kim, who cited near-term challenges despite the sector's strong profitability and capital returns [1] Group 1: Analyst Downgrade - Stephen Kim downgraded six homebuilder stocks, indicating concerns about short-term headwinds affecting the sector [1] Group 2: Sector Performance - The homebuilding sector has demonstrated robust profitability and capital returns, which contrasts with the recent downgrade [1]

Core Viewpoint - The housing sector is facing significant challenges, with major homebuilder ETFs experiencing declines and mortgage rates remaining above 6%, impacting builder performance and stock prices [1][4][10]. Group 1: Market Performance - The XHB homebuilder ETF has dropped 2%, reaching its lowest level in over two months, while the ITB construction ETF is on track for its worst week of the year [1]. - Major homebuilders like DHI, PY Homes, and Toll Brothers have seen stock declines of 10% or more since Monday, indicating a broader market downturn [2]. - The ITB is down 20% from its all-time highs, suggesting underlying issues in the housing market [12]. Group 2: Mortgage Rates and Builder Strategies - Although mortgage rates have decreased from their highs, they remain above 6%, which is a significant barrier for builders [1][11]. - Builders are reportedly buying down an average of 100 basis points in mortgage rates, effectively lowering rates to below 5.5%, but this strategy is margin destructive [4][10]. - The structural profitability problem in the housing industry is exacerbated by increased input costs and labor issues, making lower rates insufficient to improve profitability [10][11]. Group 3: Inventory and Pricing Pressure - There is an observed increase in inventory across various regions, which is expected to put pressure on pricing and subsequently affect stock performance [3][4]. - New home prices are reportedly cheaper than existing homes for the first time, indicating a shift in market dynamics [9]. Group 4: Broader Economic Implications - The current challenges in the housing market may be indicative of broader economic issues, including potential tariff implications on earnings and supply-side dynamics affecting corporate margins [8][10]. - The home improvement sector may see activity pick up if mortgage rates decline, presenting a potential area of interest for investors [10][12].

Let's go outside of tech before we uh get out of this A block. Uh look at the home builders today. DR KB py toll.Uh Evercor has downgraded that group. Um they believe margins must bottom before the stocks can rerate. We do not believe that this will materialize in the next several months.Take a look at that move in DHI down 5%. You can cycle through the others. I'm sure that must tell a similar story, right.KB PY toll. Can we look at those guys. Um, I I bring this up in part because Jenny has made a move in ...

Mortgage rates often echo changes in the 10-year Treasury yield, which is rising. Financing costs could increase for buyers. ...

We've got Stephanie Link, chief investment strategist and portfolio manager at High Totower Investors as well as a CNBC contributor. Uh she is working. She is not a government worker and she's got data or at least some information to impart to us about how you're thinking about playing this market right now.Yeah, we've I've got some data. Um the uh economy, Andrew, is running at 3.8% GDP. in the face of all these unknowns with regards to the government shutdown and tariffs, inflation, geopolitical issues, t ...

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