D.R. Horton Reports 30% Drop in Q1 Net Income to $594.8 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Businesswire
- Net Income Decline: D.R. Horton reported a net income of $594.8 million for Q1, a 30% decrease year-over-year, with earnings per share dropping to $2.03, reflecting the impact of weak market demand and cautious consumer sentiment.
- Sales Order Growth: Despite the overall revenue decline, net sales orders increased by 3% to 18,300 homes, with a total order value of $6.7 billion, demonstrating the company's resilience and adaptability to customer needs in a challenging market.
- Strong Cash Flow: The company generated $854 million in operating cash flow during Q1, maintaining liquidity at $6.6 billion, indicating a solid financial position that supports future investments and shareholder returns.
- Shareholder Returns: D.R. Horton repurchased 4.4 million shares for $669.7 million and paid $131.5 million in cash dividends during Q1, reflecting the company's ongoing commitment to shareholders and disciplined capital allocation.
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
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.
