- D.R. Horton’s earnings per share (EPS) for the 2nd quarter came in at $2.58, falling short of last year’s $3.52 and the estimated $2.64.
- The company’s pretax profit margin declined to 13.8% from 16.8% last year, also below the expected 14.1%.
- Net sales orders reached 22,437, a 15% decrease compared to last year and lower than the forecasted 26,228 orders.
- The total value of net sales orders was $8.36 billion, down 17% year-over-year, and less than the estimated $9.91 billion.
- Homes closed were valued at $7.18 billion, representing a 16% decline from the previous year and missing the estimated $7.5 billion.
- D.R. Horton’s backlog of homes was 14,164, a 21% decrease from last year, falling short of the expected 17,059.
- The financial value of the backlog was $5.48 billion, down 22% year-over-year, below the estimated $6.81 billion.
- The cancellation rate slightly increased to 16% compared to 15% in the previous year.
- Homes closed during the period were 19,276, a 15% decline from last year and below the estimated 20,219.
- The spring selling season of 2025 began slower than anticipated, as affordability issues and weakening consumer confidence have made potential homebuyers more cautious.
- Analysts’ ratings include 10 “buy,” 10 “hold,” and 2 “sell” recommendations for the stock.
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Dr Horton Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are showing bullish sentiment towards D.R. Horton Inc, also known as “America’s Builder.” In a recent report titled “D.R. Horton: Adaptation to Market Trends Powering Our Bullishness! – Major Drivers,” Baptista Research highlighted the company’s first-quarter fiscal 2025 results. Despite a slight decrease in earnings per diluted share compared to the prior year, D.R. Horton Inc generated impressive consolidated revenues of $7.6 billion with a pretax profit margin of 14.6%. This indicates the company’s ability to navigate both strengths and challenges within the market.
Furthermore, in another report titled “D.R. Horton: How Are They Adapting Pricing and Incentives in Response to Market Conditions? – Major Drivers,” Baptista Research discussed D.R. Horton’s fiscal year and quarter ending in 2024. Despite market challenges, the company, as America’s largest homebuilder, managed to maintain a solid performance. With consolidated revenue reaching $10 billion and a consistent pre-tax profit margin of 17.1% in the fourth quarter, D.R. Horton Inc’s ability to adapt to pricing strategies and market conditions continues to impress analysts on Smartkarma.
A look at Dr Horton Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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 mixed long-term outlook. The company scores moderately in Value, Growth, Resilience, and Dividend factors, indicating stability and potential for expansion.
Furthermore, with a strong Momentum score, D.R. Horton Inc shows promising performance in the near future. Overall, despite some areas needing improvement, the company appears to be well-positioned for sustainable growth in the construction and real estate market.
Summary: D.R. Horton, Inc. is a company that specializes in constructing and selling single-family homes for the entry-level and move-up markets across various regions in the United States. In addition to its core business, the company also offers financial services including mortgage financing and title agency services to homebuyers.
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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