Core Viewpoint - D.R. Horton reported better-than-expected earnings and revenues for Q1 fiscal 2026, but both metrics declined year-over-year, indicating challenges in the housing market due to consumer confidence and affordability issues [2][3]. Financial Performance - Earnings per share were $2.03, exceeding the Zacks Consensus Estimate of $1.96 by 3.6%, but down 22.2% from $2.61 year-over-year [5]. - Total revenues reached $6.89 billion, a decrease of 9.5% year-over-year, yet surpassed analysts' expectations of $6.71 billion by 2.7% [5]. - The consolidated pre-tax profit margin was 11.6%, down from 14.6% a year ago [6]. Segment Performance - Homebuilding revenues were $6.53 billion, down 9% year-over-year, with home sales at $6.51 billion, a decline of 8.9% [7]. - Home closings decreased by 6.5% year-over-year to 17,818 homes, while net sales orders improved by 2.6% to 18,300 units [7]. - The value of net sales orders increased by 0.1% year-over-year to $6.66 billion, with a cancellation rate of 18% [7]. Backlog and Inventory - As of December 31, 2025, the sales order backlog was 11,376 homes, up 3.4% year-over-year, with a backlog value of $4.31 billion, an increase of 0.3% [8]. - The company had 30,400 homes in inventory, with 20,000 unsold, and a land and lot portfolio totaling 590,500 lots [12]. Financial Health - Cash, cash equivalents, and restricted cash totaled $2.55 billion, down from $3.03 billion at the end of fiscal 2025, with total liquidity at $6.6 billion [11]. - The debt-to-total capital ratio was 18.8%, and the trailing 12-month return on equity was 13.7% [12]. Shareholder Returns - During the fiscal quarter, D.R. Horton repurchased 4.4 million shares for $669.7 million, with a remaining stock repurchase authorization of $2.6 billion [13]. Guidance - The company expects consolidated revenues between $33.5 billion and $35 billion for fiscal 2026, with homes closed anticipated to be between 86,000 and 88,000 [14]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates, with a consensus estimate shift of -9.5% [15]. - D.R. Horton currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [17].

The value of land for new housing in Britain “may have reached a floor” as easing borrowing costs and planning changes increase developers’ appetite to build, according to a survey of 40 homebuilders by Knight Frank https://t.co/1a2ZKNZ5H0 ...

Core Insights - Hovnanian Enterprises (HOV) operates in the residential homebuilding sector across 13 states in the US, divided into regions such as Northeast America, Southeast America, and Western America [1] Group 1 - The company has faced challenges in its business operations, indicating that recent performance has not been fruitful [1]

Core Insights - Toll Brothers, Inc. (TOL) reported strong first-quarter fiscal 2026 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][4][10] Financial Performance - Adjusted earnings per share (EPS) reached $2.19, surpassing the Zacks Consensus Estimate of $2.05 by 6.8% and increasing 25.1% year-over-year [4] - Total revenues amounted to $2.15 billion, exceeding the consensus mark of $1.84 billion and reflecting a 15.4% year-over-year increase [4] Sales and Deliveries - Home sales revenues increased by 0.5% year-over-year to $1.85 billion, contrary to expectations of a decline [5] - Home deliveries decreased by 4.6% to 1,899 units, better than the anticipated 7.3% decline [5] - The average selling price (ASP) of homes delivered was $976,800, up 5.6% from the previous year [5] Contracts and Backlog - Net-signed contracts totaled 2,303 units, slightly down from 2,307 units year-over-year, but the value of these contracts rose to $2.38 billion from $2.31 billion [6] - The backlog at the end of the quarter was 5,051 homes, a 20% decrease year-over-year, with potential revenues from the backlog declining 13.3% to $6.02 billion [7] Margins and Expenses - Adjusted home sales gross margin was 24.8%, a contraction of 20 basis points [8] - Selling, general and administrative (SG&A) expenses as a percentage of home sales revenues increased to 13.9% from 13.1% year-over-year [8] Balance Sheet and Cash Flow - Cash and cash equivalents stood at $1.2 billion, down from $1.26 billion at the end of fiscal 2025 [9] - The debt-to-capital ratio decreased to 24.4% from 26% at the end of fiscal 2025 [9] Future Guidance - For the second quarter of fiscal 2026, home deliveries are expected to be between 2,400 and 2,500 units, with an average price of $975,000 to $985,000 [12] - For fiscal 2026, home deliveries are anticipated to be in the range of 10,300 to 10,700 units, reflecting a decline from fiscal 2025 [14] - The company expects an adjusted home sales gross margin of 26%, down from 27.3% in fiscal 2025 [15]

Core Insights - Century Communities, Inc. is set to host Grand Opening events for two new communities in the Phoenix Metro area, Skyline Village and Montaña Vista, with openings on February 21 and February 28, respectively [1][2] - The company emphasizes its leadership in online home sales and has been recognized as one of America's Most Trustworthy Companies by Newsweek [1][2] Group 1: Skyline Village - Skyline Village is now selling homes starting from the low $300s, featuring a fiesta-themed Grand Opening event with tours of four model homes, live entertainment, and various activities [1][2] - The community offers luxury amenities including 73 acres of open space, parks, a fitness center, a pool, splash pads, and sports courts [1][2] - Home specifications include all-electric homes ranging from 1,325 to 2,431 square feet, with 3 to 5 bedrooms, 2 to 3 bathrooms, and 2-bay garages [1][2] Group 2: Montaña Vista - Montaña Vista is now selling homes starting from the mid $300s, with a Grand Opening celebration featuring a farmer's market-inspired showcase, community tours, and local business highlights [1][2] - The community is located near outdoor recreation areas and offers amenities such as parks, walking trails, and quick access to I-10 [1][2] - Home specifications include gas community homes ranging from 1,585 to 2,377 square feet, with similar bedroom and bathroom configurations as Skyline Village [1][2] Group 3: Online Homebuying Experience - Century Communities promotes its industry-first online homebuying experience, allowing customers to electronically sign contracts and submit deposits [1][2] - The online platform enables potential buyers to shop for homes and complete purchases conveniently [1][2] Group 4: Company Overview - Century Communities operates in 16 states and over 45 markets across the U.S., providing a range of services including mortgage and insurance brokerage [1][2] - The company's mission is to build high-quality homes at affordable prices, catering to a diverse range of homebuyers [1][2]

Core Viewpoint - Lennar's significant investment in Opendoor Technologies indicates confidence in the future of digital home sales and strengthens the strategic partnership between the two companies, positively impacting Opendoor's stock price [1][3]. Group 1: Company Overview - Lennar is one of the largest homebuilders in the U.S., focusing on single-family homes and offering mortgage, title, and insurance services, making it a key indicator of housing demand [2]. - Opendoor Technologies is experiencing strong stock performance, with a notable increase in share price attributed to investor optimism and strategic partnerships [1][8]. Group 2: Financial Performance and Expectations - Opendoor is set to report earnings, with expectations of a loss of approximately $0.10 per share and quarterly revenue around $595 million; any improvement in losses or growth in builder channels could further boost the stock [4]. - Over the past year, Opendoor's shares have surged by 202.49%, indicating a strong recovery and positioning closer to 52-week highs [5]. Group 3: Technical Analysis - The stock is currently trading 12.4% below its 20-day simple moving average (SMA) and 31.8% below its 100-day SMA, suggesting short-term weakness, while being 0.2% above its 200-day SMA, indicating a potential long-term bullish outlook [5][6]. - The Relative Strength Index (RSI) is at 31.41, showing neutral momentum, while the MACD indicates bearish pressure, reflecting mixed momentum and uncertainty in the stock's near-term direction [6]. Group 4: Market Sentiment - The Benzinga Edge scorecard rates Opendoor Technologies with a strong momentum score of 96.54, indicating it is outperforming the broader market; however, profitability challenges remain a concern for sustaining investor confidence [7].

Luxury homebuilder Toll Brothers signed fewer contracts for new homes than expected as high prices and economic uncertainty hold back some buyers. Norah Mulinda reports. -------- More on Bloomberg Television and Markets Like this video? Subscribe and turn on notifications so you don't miss any videos from Bloomberg Markets & Finance: https://tinyurl.com/ysu5b8a9 Visit http://www.bloomberg.com for business news & analysis, up-to-the-minute market data, features, profiles and more. Connect with Bloomberg Tele ...

Core Viewpoint - Toll Brothers exceeded earnings estimates, indicating strong performance and suggesting resilience against high housing costs due to its affluent customer base [1] Company Summary - Toll Brothers reported earnings that surpassed market expectations, reflecting robust demand in the luxury home segment [1] - The company's clientele, characterized by higher income levels, provides a buffer against the broader housing market challenges, making it less vulnerable to rising housing costs [1] Industry Summary - The performance of Toll Brothers may signal positive trends within the luxury housing market, which could be less affected by economic fluctuations compared to the overall housing sector [1] - The resilience of high-end homebuilders like Toll Brothers could indicate a divergence in market dynamics, where luxury segments maintain stability amid broader economic pressures [1]

New residential construction in the US rose to a five-month high in December, as homebuilders boosted production to take advantage of lower borrowing costs https://t.co/HWFCBhuMPD ...

Management attributes strong Q1 performance to a wealthy customer cohort that remains largely insulated from affordability pressures due to home equity growth and stock market appreciation. The company is maintaining a deliberate 50-50 mix between high-margin build-to-order homes and faster-turning spec inventory to optimize both profitability and volume. Operational outperformance in adjusted gross margin in the first quarter was driven primarily by operating efficiency, while a favorable geographic ...