- D.R. Horton’s earnings per share (EPS) for 1Q 2025 were $2.61, surpassing the estimated $2.38, but down from $2.82 year over year.
- The company reported net sales orders of 17,837, slightly below estimates of 18,478 and down 1.3% year over year.
- Net sales orders were valued at $6.65 billion, which represents a 2% drop year over year, falling short of the $6.97 billion estimate.
- Homes closed amounted to $7.15 billion, a 1.8% decrease compared to the previous year, but exceeding the estimated $6.69 billion.
- The backlog of homes was 11,003, a significant 21% reduction from the previous year and under the estimated 12,637 units.
- Backlog value decreased 21% year over year to $4.30 billion, missing the estimated $5.03 billion.
- The cancellation rate improved to 18%, down from 19% year over year.
- The number of homes closed was 19,059, which is down 1.5% from the previous year but above the estimate of 17,802 homes.
- David Auld, Executive Chairman, highlighted that despite challenges like affordability and competitive market conditions, initiatives such as mortgage rate buydowns have helped address affordability and spur demand.
- D.R. Horton focused on offering affordable homes, providing smaller floor plans to meet homebuyer demand.
- Analyst ratings indicate 9 buys, 11 holds, and 2 sells for the company.
Dr Horton Inc on Smartkarma
Analyst coverage of D.R. Horton Inc on Smartkarma by Baptista Research highlights the company’s adaptability to market conditions. In their report “D.R. Horton: How Are They Adapting Pricing and Incentives in Response to Market Conditions? – Major Drivers,” the analysts discuss the company’s solid performance in fiscal year and quarter ending in 2024. Despite market challenges, D.R. Horton, America’s largest homebuilder, achieved strong revenue figures, with a consolidated revenue of $10 billion and a pre-tax profit margin of 17.1% in the fourth quarter, maintaining consistent profitability year-over-year.
In another report titled “D.R. Horton Inc.: Efficient Land Development Strategy & Other Major Drivers,” Baptista Research analyzes the company’s third-quarter 2024 earnings. Despite facing inflation and raised mortgage interest rates, D.R. Horton demonstrated a 5% increase in earnings and a consolidated pretax income growth of 1% to $1.8 billion. The analysts point out D.R. Horton’s strong cash generation, with $972 million produced from homebuilding operations in the first nine months ended June 30, making it an attractive option for investors seeking steady performance.
A look at Dr Horton Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, D.R. Horton Inc has a promising long-term outlook. With a strong Growth score of 4, the company is positioned well for future expansion and development. This indicates that D.R. Horton Inc is likely to experience solid growth in the coming years, reflecting positively on its business prospects.
While the Value, Resilience, and Momentum scores are decent at 3, 3, and 2 respectively, the Dividend score is lower at 2. This suggests that while D.R. Horton Inc may not be considered a top dividend-paying stock, its overall performance in terms of value, resilience, and momentum is steady. Investors looking for long-term growth opportunities may find D.R. Horton Inc to be a favorable choice based on its encouraging Growth score.
Summary: D.R. Horton, Inc. focuses on constructing and selling single-family homes targeting entry-level and move-up markets across various regions in the United States. The company also offers mortgage financing and title agency services through its financial services operations.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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