Yahoo Finance Earnings Beat: D.R. Horton, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
D.R. Horton, Inc. (NYSE:DHI) just released its second-quarter report and things are looking bullish. D.R. Horton delivered a significant beat with revenue hitting US$9.1b and statutory EPS reaching US$3.52, both beating estimates by more than 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for D.R. Horton
Following last week's earnings report, D.R. Horton's 19 analysts are forecasting 2024 revenues to be US$36.9b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 5.6% to US$14.19 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$36.7b and earnings per share (EPS) of US$14.21 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$168, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic D.R. Horton analyst has a price target of US$200 per share, while the most pessimistic values it at US$130. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the D.R. Horton's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.6% annualised decline to the end of 2024. That is a notable change from historical growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - D.R. Horton is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$168, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for D.R. Horton going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for D.R. Horton that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
