D.R. Horton Stock In Focus After Q1 Earnings Beat: Retail’s Bullish

Shares of D.R. Horton Inc. ($DHI) were up 0.21% in the after-hours trading session on Tuesday after falling 2.7% earlier in the day, even as the home builder posted better-than-expected first-quarter earnings. Retail sentiment remained bullish.

The company posted earnings per share of $2.61, beating consensus estimates of $2.35, according to Stocktwits data. Its revenues for the first quarter were $7.61 billion, compared to the $7.01 billion that Wall Street analysts anticipated.

However, its net income decreased 11% to $844.9 million compared to $947.4 million in the same quarter of fiscal 2024.

“Although the level of new and existing home inventories has increased from historically low levels, the supply of homes at affordable price points is generally still limited, and demographics supporting housing demand remain favorable,”  David Auld, executive chairman of D.R. Horton said. “Despite continued affordability challenges and competitive market conditions, incentives such as mortgage rate buydowns have helped to address affordability and spur demand.”

The company also repurchased 6.8 million shares of common stock for $1.1 billion during the first quarter of fiscal 2025, it highlighted.

For fiscal 2025, it expects consolidated revenues to range from $36 billion to $37.5 billion. That is roughly in line with $36.61 billion that Wall Street analysts expect, according to Stocktwits data. 
Sentiment on Stocktwits continues to be ‘bullish’ compared to a week ago. Message volumes rose to ‘extremely high’ compared to ‘high.’

DHI sentiment meter and message volumes on Jan 21 as of 9:15 pm ET

Last week, Barclays lowered the price target on D.R. Horton to $150 from $170 with an ‘Equal Weight’ rating, The Fly.com reported. According to the firm, building products are currently preferred over homebuilders, with “subdued” earnings expected across both subsectors. The report noted that building product stocks have seen “greater dislocations versus fundamentals, leaving better entry points.”

D.R. Horton constructs and sells both single-family and multi-family rental properties with operations in 125 markets in 36 states across the U.S.

D.R. Horton stock is up 2.7% year-to-date.

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