red toy house placed on table with pile of coins

D.R. Horton Q4 Earnings: Can NYSE:DHI Hit Its $1.78 EPS Target?

in EARNINGS/INVESTING IDEAS by

D.R. Horton, Inc. (NYSE:DHI) is scheduled to report Q4 earnings results before markets open for trading on November 10, 2020.

The company is expected to report earnings of $1.78/share on revenue of $5.889 billion. The consensus earnings per share (EPS) of $1.78/share is based on a poll of 14 analysts and represents a growth in eps of 32.0% over the same quarter last year, when the company reported earnings of $1.35/share.

The revenue forecast of $5.889 billion based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 16.9%. Last year the company reported $5.039 billion in revenue for the quarter.

Expected to report EPS growth of 32.0% for Q4, 2020
Metric Expected Prior Year YoY Change
Revenue $5,888.85 $5,038.90 16.9%
EPS $1.78 $1.35 32.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and met expectations 2 quarters.

What are your expectations from D.R. Horton, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2020 $1.28 $1.61 26.4% Beat
Q2, 2020 $1.10 $1.29 17.0% Beat
Q1, 2020 $0.91 $1.07 17.1% Beat
Q4, 2019 $1.25 $1.35 8.2% Beat
Q3, 2019 $1.05 $1.26 19.8% Beat
Q2, 2019 $0.87 $0.93 7.4% Beat
Q1, 2019 $0.77 $0.76 −1.2% Missed
Q4, 2018 $1.22 $1.22 0.0% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $66.57 $66.60 0.0% Increase
April 28, 2020 $42.11 $48.55 15.3% Increase
January 27, 2020 $58.51 $61.38 4.9% Increase
November 12, 2019 $52.65 $54.33 3.2% Increase

Fundamentals And Technical Analysis

D.R. Horton, Inc. is currently trading at $70.61/share, down −3.2% for the day. The company is trading at approximately 86.9% of its 52-week high of $81.21/share. The company’s stock price is up 6.0% since the last earnings report and up 2.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 46.22 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:DHI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 12.53 and a forward P/E multiple of 12.48.

D.R. Horton, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.32. The following table summarizes some other key fundamental ratios:

Data as of November 8, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q3
Period End Date June 30, 2020
Stock Price (Current) $70.61
P/E Ratio 12.5x
P/E Ratio (Fwd) 12.5x
PEG Ratio 0.4
Total Debt / Total Capital 14.0%
Levered Free Cash Flow $1.117 billion
EV / EBITDA 10.7x

Finbox

D.R. Horton, Inc. is a large-cap stock with a market capitalization of $25.681 billion and a total enterprise value of $28.054 billion. The company operates in the Consumer Discretionary sector and the Household Durables industry.

D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States. It engages in the acquisition and development of land; and construction and sale of homes in 20 states and 51 markets in the United States under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as town homes, duplexes, and triplexes. It is also involved in the origination and sale of mortgages; and provision of title insurance policies, and examination and closing services, as well as engages in the residential lot development business. The company primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is based in Arlington, Texas.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.