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].

Core Insights - NVR reported quarterly earnings of $112.33 per share, exceeding the Zacks Consensus Estimate of $107.88 per share, but down from $130.5 per share a year ago, indicating an earnings surprise of +4.12% [1] - The company generated revenues of $2.56 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.34%, although this represents a decline from $2.68 billion in the same quarter last year [2] - NVR has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of NVR's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $104.27, with expected revenues of $2.45 billion, while the estimate for the current fiscal year is $418.15 on $9.69 billion in revenues [7] Industry Context - The Building Products - Home Builders industry, to which NVR belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Core Viewpoint - KB Home's recent earnings report showed a mixed performance with earnings and revenues beating estimates but declining year-over-year, reflecting challenges in the housing market due to high mortgage rates and affordability concerns [2][3][5]. Earnings & Revenue Discussion - Adjusted earnings per share (EPS) for Q2 fiscal 2025 were $1.5, exceeding the Zacks Consensus Estimate of $1.45 by 3.5%, but down from $2.15 in the same quarter last year [5]. - Total revenues reached $1.53 billion, surpassing the consensus mark of $1.495 billion by 2.3%, yet decreased by 10.5% year-over-year [5]. Segmental Details - Homebuilding segment revenues were $1.525 billion, a decline of 10.4% from $1.702 billion in the prior year, with homes delivered dropping 11% to 3,120 units [6]. - The average selling price (ASP) increased by 1.2% year-over-year to $488,700 [6]. - Net orders fell by 13% to 3,460 units, with the value of net orders decreasing to $1.611 billion from $2.032 billion a year ago [7]. Financial Position - As of May 31, 2025, KB Home had cash and cash equivalents of $308.9 million, down from $598 million at the end of fiscal 2024, with total liquidity of $1.19 billion [12]. - The debt-to-capital ratio increased to 32.2 from 29.4 at the end of fiscal 2024 [12]. Guidance and Outlook - KB Home lowered its fiscal 2025 guidance, now expecting housing revenues between $6.30 billion and $6.5 billion, down from a previous range of $6.6 billion to $7 billion [14]. - The expected housing gross margin is now between 19% and 19.4%, compared to the prior range of 19.2% to 20% [15]. - The company anticipates SG&A expenses as a percentage of housing revenues to be in the range of 10.2% to 10.6% [16]. Market Performance - KB Home's stock has increased by approximately 11.2% since the last earnings report, outperforming the S&P 500 [1]. - The consensus estimate for KB Home has shifted downward by 18% since the earnings release, indicating a negative sentiment among investors [17].