D.R. Horton DHI 2025Q3 Earnings Preview Upside Potential on Solid Revenue Growth

Generated by AI AgentAinvestweb
Saturday, Jul 19, 2025 9:44 pm ET1min read
Aime RobotAime Summary

- D.R. Horton to report Q3 2025 earnings with 22.33% stock price forecast and 10.74% EPS growth.

- Analysts highlight strong ROE (17.4%) and $5B buyback, signaling confidence in capital allocation.

- Despite Q2 revenue/earnings declines, resilient gross margins and undervaluation drive optimism.

Forward-Looking Analysis
D.R. Horton is set to report its Q3 2025 earnings on July 22, 2025. Analysts have a consensus "Buy" rating and forecast a 22.33% increase in the stock price, with an average price target of $161.23. The company's earnings are expected to grow by 10.74% next year, from $13.04 to $14.44 per share. Revenue and earnings growth are forecasted at 4.2% and 2.3% per annum, respectively. Despite a recent price target decrease to $147, a subsequent increase to $184 reflects positive sentiment. The company is also expected to have a future return on equity of 17.4%. Overall, analysts are optimistic about D.R. Horton's growth trajectory, driven by strong demand in the housing market and effective capital allocation strategies.

Historical Performance Review
In Q2 2025, D.R. Horton reported revenues of $7.73 billion, a net income of $819.10 million, and an EPS of $2.59. The gross profit for the quarter stood at $1.90 billion. These figures reflect a decline from the previous year's performance, where net income decreased by 31%. However, the company's ability to maintain strong gross profit margins indicates resilience amid market challenges.

Additional News
D.R. Horton recently announced a significant equity buyback program worth $5 billion, reflecting confidence in its financial position. The company also declared a second-quarter dividend of $0.40, consistent with its commitment to returning value to shareholders. Despite macroeconomic headwinds, D.R. Horton is perceived as an undervalued stock with a strong demand backdrop. The company's effective debt management and strategic capital allocation have been positively highlighted, contributing to its robust market position.

Summary & Outlook
D.R. Horton is in a strong financial position, with a consistent growth outlook supported by effective capital allocation and shareholder value initiatives. The company's projected revenue and earnings growth, along with a solid return on equity, indicate a bullish future prospect. Despite recent price target fluctuations, the consensus remains optimistic due to the company's ability to capitalize on the ongoing housing demand. In conclusion, D.R. Horton is well-positioned for continued growth, supported by its strategic initiatives and market conditions.

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