D.R. Horton (DHI) to Report Q1 Earnings with EPS Estimate Down 26.4%

Written by Emily J. Thompson, Senior Investment Analyst

DHI-3.13%

Source: seekingalpha

Updated: 1h ago

0mins

Source: seekingalpha

Earnings Forecast Decline: D.R. Horton anticipates a Q1 2024 EPS of $1.92, reflecting a 26.4% year-over-year decline, indicating significant market challenges and pressure on profitability.
Revenue Projection Drop: The company expects Q1 revenue to be $6.65 billion, down 12.5% year-over-year, highlighting the impact of a sluggish real estate market and weakened demand.
Strong Historical Performance: Over the past two years, D.R. Horton has exceeded EPS estimates 88% of the time and revenue estimates 100% of the time, demonstrating reliability in financial forecasting.
Revision Trends: In the last three months, there have been no upward revisions to EPS estimates and 9 downward revisions, while revenue estimates saw 1 upward and 6 downward revisions, reflecting analysts' cautious outlook on the company's future performance.

DHI

$155.96+Infinity%1D

Analyst Views on DHI

Wall Street analysts forecast DHI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DHI is 157.00 USD with a low forecast of 117.00 USD and a high forecast of 191.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

11 Analyst Rating

3 Buy

6 Hold

2 Sell

Hold

Current: 161.000

Low

117.00

Averages

157.00

High

191.00

Current: 161.000

Low

117.00

Averages

157.00

High

191.00

BofA

Neutral

maintain

$158 -> $162

Al Analysis

2026-01-16

New

Reason

BofA

Price Target

$158 -> $162

Al Analysis

2026-01-16

New

maintain

Neutral

Reason

BofA raised the firm's price target on D.R. Horton to $162 from $158 and keeps a Neutral rating on the shares. After underperforming the market in 2025, homebuilder stocks have rallied sharply year-to-date, but the firm believes weaker employment and migration trends, ongoing inflation and a more competitive selling environment driven by elevated new and resale inventory will pressure fundamentals through 2026 and make it a "reset year for homebuilders," the analyst tells investors in a year ahead note on the group.

RBC Capital

Underperform

downgrade

$118 -> $117

2026-01-09

Reason

RBC Capital

Price Target

$118 -> $117

2026-01-09

downgrade

Underperform

Reason

RBC Capital lowered the firm's price target on D.R. Horton to $117 from $118 and keeps an Underperform rating on the shares. Goldman remains cautious into early 2026, with housing affordability still challenging and R&R potentially inflecting later in the year, the analyst tells investors in a research note. Nonresidential markets are mixed, key risks include policy changes, rates, and tariffs, and the sector is expected to remain volatile, with homebuilders the most cautious, distribution favored, and building products OEMs offering relatively attractive valuations.

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RBC Capital

Underperform

downgrade

$118 -> $117

2026-01-09

Reason

RBC Capital

Price Target

$118 -> $117

2026-01-09

downgrade

Underperform

Reason

RBC Capital lowered the firm's price target on D.R. Horton to $117 from $118 and keeps an Underperform rating on the shares. RBC Capital remains cautious into early 2026, with housing affordability still challenging and R&R potentially inflecting later in the year, the analyst tells investors in a research note. Nonresidential markets are mixed, key risks include policy changes, rates, and tariffs, and the sector is expected to remain volatile, with homebuilders the most cautious, distribution favored, and building products OEMs offering relatively attractive valuations.

Citi

Neutral

downgrade

$163 -> $154

2026-01-08

Reason

Citi

Price Target

$163 -> $154

2026-01-08

downgrade

Neutral

Reason

Citi lowered the firm's price target on D.R. Horton to $154 from $163 and keeps a Neutral rating on the shares. The firm updated estimates and targets in the homebuilding and building products group as part of its 2026 outlook. Citi continues to prefer heavy construction materials with exposure to infrastructure over the residential exposed names.

About DHI

D.R. Horton, Inc. is a homebuilding company. The Company constructs and sells homes through its operating divisions in 125 markets across 36 states. The Company’s segments include Homebuilding, Rental, Forestar, Financial Services, and Other. The Homebuilding divisions are primarily engaged in the acquisition and development of land and the construction and sale of residential homes. The Company’s rental segment consists of single-family and multifamily rental operations. The single-family rental operations construct and lease single-family homes within a community and then generally market each community for a bulk sale of rental homes. The Forestar segment is a residential lot development company with operations in 59 markets across 24 states. The Financial services segment provides mortgage financing and title agency services to homebuyers in many of the Company’s homebuilding markets. It also conducts insurance-related operations.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.