June 22, 2023 – D.R. Horton (NYSE:DHI), one of the largest construction companies in the United States, recently announced its impressive quarterly earnings results for Q1 2023. According to their report released on April 20th, the company boasted an astonishing $2.73 earnings per share (EPS) for the quarter. This result was above Wall Street’s consensus estimate of $1.90 EPS by a significant margin of $0.83 EPS. The firm reported revenue of $7.97 billion, surpassing analyst estimates of $6.48 billion.
D.R. Horton’s net margin was at a stellar rate of 15.39%, and their return on equity was recorded at 25.94%. However, despite this impressive performance, it should be noted that the business’s revenue for the quarter had decreased by just .03% YoY.
In other news, COO Paul J. Romanowski sold 40,000 shares of the company’s stock at an average price of $112.16 per share (totaling $4,486,400) in a transaction dated May 17th while COO Michael J… Murray sold 54,000 shares for a total value of $5,951,340 on May 3rd.
Despite insider selling occurring in recent weeks by top executives worth millions- Corporate insiders altogether own only ~0..61% percent of D.R.Horton’s total stocks outstanding- D.R.Horton’s stock has not slowed down with it opening today at an impressive market cap value currently at over %40 billion USD trading into new territories with fresh milestones marked daily.
As per records submitted to SEC website which is open to public access and inquiry on periodic updates from listed companies as regulated by SEC/US Federal Law; such update and transactions are normally released every three months (“Quarterly”), but sometimes more frequently (“Interim”) or as required by changing conditions. For the coming quarters it remains to be seen if such performance can be maintained, however, D.R. Horton’s future remains optimistic due to their solid financial statements and healthy market position.
The firm’s current share price is $118.96, continuing its upward trend with a PE Ratio of 8.02 and a price-to-earnings-growth ratio of 0.67 and a beta of 1.53 as at the time of writing this piece on June 22nd, while boasting an impressive fifty-day moving average price of $109.43 and a two-hundred-day moving average price of $99.29. Its strong liquidity ratios with a quick ratio of 1.27 coupled with the company’s debt-to-equity ratio of just 0.28 has brought excitement to investors in both the short-term and long-term for sustainable growth prospects in their portfolio holdings.
With D.R. Horton’s excellent financial performance coupled with favorable market conditions, it is not surprising that many investors and analysts predict continued success for this top-performing company well into the foreseeable future alongside similar sought-after construction companies in related sectors beyond US borders entering newer markets showcasing higher than expected resilience regardless of industry competition from established players/ Oligopolies or various Macro-Economic challenges they might encounter wholly riding on ever-growing demand over increasing global population overtime surging sectoral needs across regions).
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D.R. Horton, Inc.’s Earnings Estimates Decreased for Q4 2023 by Zacks Research Analysts
D.R. Horton, Inc. is a prominent American construction company whose earnings estimates for Q4 2023 have been decreased by Zacks Research analysts from $2.95 per share to $2.94 per share as of June 20th, 2023. Zacks analyst S. Mukherjee has predicted a consensus estimate of $11.21 per share for the company’s current full-year earnings.
D.R. Horton’s estimated earnings for Q2 and Q3 2024 are $2.77 EPS and $2.89 EPS respectively, with projected Q4 earnings at $2.87 EPS and FY2024 earnings at $10.99 EPS, according to the research firm’s report on Tuesday, June 20th, 2023.
The report also stated that D.R. Horton could potentially earn an EPS of $2.83 in Q2 2025 and an FY2025 estimated earning of $11.34 EPS.
Several equities research analysts had previously rated the stock with one sell rating, eight hold ratings while eight other analysts gave a buy rating with an average rating of “Hold” and a consensus target price of $115.90 as indicated by Bloomberg.com.
As reported by Zacks Research on June 20th, several hedge funds have recently modified their holdings of DHI including Fairfield Bush & CO., American Century Companies Inc., Sei Investments Co., Panagora Asset Management Inc., and Prudential PLC totaling up to a stake owned by institutional investors worth approximately 86..67% percent.
With construction being a consistent driver for growth in the US economy over the years, it will be interesting to see how this downgrade in D.R.Horton’s Q4 2023 earnings estimate eventually impacts them on their path towards success through strategic decision making while staying true to its commitment towards affordable housing for all Americans across various demographic lines which forms part of their company’s core values.