FMP
D.R. Horton Beats Q1 Earnings Estimates and Issues Strong 2025 Outlook
Jan 21, 2025 4:01 PM - Davit Kirakosyan
Image credit: FMP
D.R. Horton Inc. (NYSE:DHI) released better-than-expected results for its fiscal first quarter of 2025. The home construction giant delivered solid performance despite a slight decline in revenue and net sales orders, showcasing resilience amid evolving market conditions.
The company reported earnings per share (EPS) of $2.61 for the quarter, surpassing Wall Street’s projection of $2.38. Revenue dipped 1% year-over-year to $7.61 billion but exceeded analysts' expectations of $7.12 billion.
Net sales orders totaled $6.65 billion, representing a 2% decline compared to the same period last year and falling short of the $6.97 billion estimate. However, the number of homes closed reached 19,059, outperforming the forecasted 17,802, despite marking a 1.5% drop year-over-year.
D.R. Horton’s backlog, a measure of future revenue potential, fell 21% year-over-year to $4.30 billion, coming in below the $5.03 billion consensus. Despite this, the company emphasized strong housing demand supported by favorable demographic trends and limited availability of homes at affordable price points.
Looking ahead to fiscal 2025, the company anticipates generating revenue between $36 billion and $37.5 billion, aligning with market expectations. D.R. Horton also projects closing 90,000 to 92,000 homes and increasing consolidated cash flow from operations compared to fiscal 2024. Additionally, the homebuilder plans to return approximately $500 million to shareholders through dividends.
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