Homebuilder (NYSE: DHI) will be announcing earnings results this Tuesday before market open. Here’s what investors should know.
D.R. Horton missed analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $7.73 billion, down 15.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations.
Is D.R. Horton a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting D.R. Horton’s revenue to decline 11.8% year on year to $8.79 billion, a reversal from the 2.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.90 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. D.R. Horton has missed Wall Street’s revenue estimates twice over the last two years.
Looking at D.R. Horton’s peers in the industrials segment, some have already reported their Q2 results, giving us a hint as to what we can expect. KB Home’s revenues decreased 10.5% year on year, beating analysts’ expectations by 1.6%, and Lennar reported a revenue decline of 4.4%, topping estimates by 1.1%. KB Home’s stock price was unchanged after the resultswhile Lennar was down 4.4%.
Read our full analysis of KB Home’s results here and Lennar’s results here.
There has been positive sentiment among investors in the industrials segment, with share prices up 6.5% on average over the last month. D.R. Horton is up 2.3% during the same time and is heading into earnings with an average analyst price target of $145.53 (compared to the current share price of $131.65).
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