Dream Finders Homes Inc. (DFH) came out with quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.48%. A quarter ago, it was expected that this homebuilder would post earnings of $1.13 per share when it actually produced earnings of $1.29, delivering a surprise of 14.16%.Over the last four quarters, ...

Homebuilding Performance - Homebuilding revenues increased 18% to $970 million from $825 million year-over-year[3] - Home closings rose 16% to 1,925 compared to 1,655 in the same quarter last year[3] - Net new orders increased 18% to 2,032 from 1,724 year-over-year, with a cancellation rate improvement to 11.7%[12] - Homebuilding gross margin improved by 140 basis points to 19.2% compared to 17.8% in the prior year[8] - Adjusted homebuilding gross margin increased 150 basis points to 27.8% from 26.3% year-over-year[9] - Home closings rose to 1,925 units in Q1 2025, compared to 1,655 units in Q1 2024, reflecting an increase of 16.3%[25] - The average sales price of homes closed was $498,284 in Q1 2025, slightly up from $494,995 in Q1 2024, indicating a growth of 0.6%[25] - Homebuilding gross margin increased to $186.6 million in Q1 2025, compared to $146.6 million in Q1 2024, a rise of 27.3%[30] - Adjusted homebuilding gross margin for Q1 2025 was $270.1 million, up from $217.2 million in Q1 2024, representing a growth of 24.3%[30] Financial Performance - Total revenues for the three months ended March 31, 2025, increased to $989.9 million, up from $827.8 million in the same period of 2024, representing a growth of 19.6%[23] - Financial services pre-tax income increased 29% to $7 million from $5 million[3] - Earnings per share remained stable at $0.55 for basic shares in both Q1 2025 and Q1 2024[23] Market Position and Strategy - Controlled lot pipeline expanded to 60,538 as of March 31, 2025, up from 54,698 at the end of 2024[3] - Recent acquisitions include Liberty Communities and Green River Builders, enhancing market presence in Atlanta[5] - The company maintains its full-year guidance of approximately 9,250 expected home closings for 2025[17] Debt and Liquidity - Total debt increased to $1.48 billion as of March 31, 2025, from $1.00 billion in the previous year, reflecting a growth of 47.0%[35] - Net homebuilding debt to net capitalization ratio was 40.4% as of March 31, 2025, compared to 39.9% in the same period of 2024, indicating a slight increase in leverage[35] - Total liquidity reached $677 million as of March 31, 2025, including cash and credit availability[3] Backlog and Cancellations - The backlog as of March 31, 2025, was valued at $1.39 billion, down from $2.32 billion in the previous year, a decrease of 40.2%[25] - The cancellation rate improved to 11.7% in Q1 2025, down from 21.0% in Q1 2024, showing a significant reduction in cancellations[25]

The U.S. construction sector showed clear signs of deceleration. Public sector investments in infrastructure and manufacturing are likely to have supported growth, while residential remodeling and selective new home construction likely remained a headwind. High borrowing costs, labor shortages, material price volatility, and regulatory complexity continue to pose significant challenges.With the help of the Zacks Stock Screener, some of the companies under the broader Construction sector, including Dream Fin ...

Core Viewpoint - Dream Finders Homes Inc. (DFH) shows potential for upside with a mean price target of $29.50, indicating a 29.9% upside from the current price of $22.71 [1] Price Targets and Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $4.44, suggesting variability among analysts [2] - The lowest estimate of $26 indicates a 14.5% increase, while the highest estimate of $34.50 suggests a potential surge of 51.9% [2] - A low standard deviation indicates strong agreement among analysts regarding price movement direction [9] Analyst Sentiment and Earnings Estimates - Analysts have shown increasing optimism about DFH's earnings prospects, as evidenced by higher EPS estimate revisions [11] - The Zacks Consensus Estimate for the current year has increased by 1.1% over the past month, with one estimate rising and no negative revisions [12] - DFH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13]

Dream Finders Homes, Inc. (DFH) has completed the acquisition of Alliant National Title Insurance Company, Inc. and its affiliated entity.The company closed the transaction on April 18, 2025, following the initial announcement made on Oct. 23, 2024.Dream Finders Strengthens Financial ServicesThe acquisition enhances Dream Finders’ financial services by integrating Alliant National’s title insurance operations. With more than 700 independent agents across 32 states and the District of Columbia, this expansio ...

Company Performance - Dream Finders Homes Inc. (DFH) closed at $22.44, showing a +0.18% change from the previous day, outperforming the S&P 500 which fell by 0.23% [1] - Over the last month, DFH shares decreased by 11.71%, compared to a 7.56% loss in the Construction sector and a 12.13% loss in the S&P 500 [1] Earnings Expectations - Analysts expect DFH to report earnings of $0.49 per share, reflecting a year-over-year decline of 10.91% [2] - The consensus estimate for revenue is $945.3 million, indicating a 14.19% increase year-over-year [2] Full-Year Estimates - Zacks Consensus Estimates project DFH's full-year earnings at $3.14 per share and revenue at $4.82 billion, representing year-over-year changes of -5.99% and +8.25%, respectively [3] - Recent revisions in analyst estimates are crucial as they reflect near-term business trends, with positive changes indicating optimism about the company's profitability [3][4] Valuation Metrics - DFH has a Forward P/E ratio of 7.15, which is lower than the industry average of 8.11, suggesting a valuation discount [6] - The company has a PEG ratio of 1.29, compared to the industry average PEG ratio of 0.93, indicating a higher expected earnings growth trajectory relative to its peers [7] Industry Context - The Building Products - Home Builders industry, part of the Construction sector, ranks in the bottom 19% of all industries according to the Zacks Industry Rank [8] - The Zacks Industry Rank assesses the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Group 1 - Dream Finders Homes Inc. (DFH) shares increased by 5.1% to $22.40, following a significant trading volume, contrasting with a 14.5% loss over the previous four weeks [1][2] - The homebuilding sector, including Dream Finders Homes, benefited from favorable policy outcomes, particularly tariff exceptions for Canada and Mexico, which were deemed a major win for homebuilders [2] - Dream Finders Homes is projected to report quarterly earnings of $0.49 per share, reflecting a year-over-year decline of 10.9%, while revenues are expected to reach $945.3 million, an increase of 14.2% from the same quarter last year [2] Group 2 - The consensus EPS estimate for Dream Finders Homes has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [4] - The stock currently holds a Zacks Rank of 2 (Buy), suggesting positive sentiment among analysts [4] - In comparison, Taylor Morrison Home (TMHC), another company in the same industry, saw a 3.2% increase in its stock price, but has experienced a -7.6% return over the past month [4]

Core Insights - Dream Finders Homes, Inc. has been awarded the 2025 Builder of the Year by Zonda's BUILDER, recognizing its outstanding performance in the homebuilding industry [1][2] - The company achieved record financial results in 2024, with 8,583 closings, a pre-tax income of $438 million, and home building revenues of $4.4 billion, marking an 18% increase from 2023 [2][4] - Dream Finders has expanded its market presence through strategic acquisitions, including Crescent Homes and Cherry Creek Mortgage, and has entered new markets such as Atlanta and Tampa [7][8] Company Performance - Dream Finders Homes is ranked No. 14 on the 2025 Builder 100 list, reflecting its significant growth and market position [2] - The company reported net new orders of 1,611 in Q4 2024, a 46% increase compared to 1,106 in Q4 2023, indicating strong demand for its homes [7] Market Expansion - The company operates in over 220 communities across 10 states, including Arizona, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, Tennessee, Virginia, and Maryland [3] - Recent acquisitions have allowed Dream Finders to enhance its presence in high-demand coastal markets, particularly in Florida and Tennessee [7][8]

Core Viewpoint - Dream Finders Homes, Inc. (DFH) has experienced a significant decline in share price, down 38.6% over the past six months, underperforming compared to its industry and broader market indices [1][3]. Market Conditions - The U.S. housing market is facing affordability challenges due to high mortgage rates and rising homebuilding costs from new tariffs, particularly affecting demand and housing starts [3]. - Homebuyers are adjusting to new mortgage rate benchmarks, negatively impacting homebuilders like Dream Finders [3]. Competitive Position - Year-to-date, DFH's stock has decreased by 9.2%, but it has outperformed several notable homebuilders, including KB Home, Toll Brothers, and Lennar, which have seen declines of 15.3%, 21.4%, and 19.3%, respectively [4]. - Despite market uncertainties, DFH's asset-light strategy and focus on affordable housing are helping it maintain a competitive edge [5]. Business Strategy - DFH employs an asset-light and capital-efficient lot acquisition strategy, controlling 54,698 lots as of December 31, 2024, a significant increase from 29,748 lots at the end of 2023 [6]. - The company targets entry-level and first-time move-up homebuyers, which are key demand sources, and has seen a rise in housing starts, indicating potential benefits in the near term [7]. Financial Performance - In 2024, DFH reported a 17% year-over-year increase in home closings to 8,583 units, with homebuilding revenues rising 18% to $4.4 billion, supported by a high average selling price of $509,249 [8]. - The earnings estimate trend for 2025 has increased by 1% over the past 60 days, although a year-over-year decline of 6% is expected [10]. Acquisition Strategies - DFH's acquisition of Cherry Creek Mortgage and Liberty Communities, LLC, enhances its service capabilities and market presence, allowing for increased customer reach and addressing affordability issues [9]. Valuation - DFH is currently trading at a discount compared to industry peers on a forward 12-month price-to-earnings (P/E) ratio basis, presenting an attractive entry point for investors [13]. Investment Outlook - Despite ongoing affordability issues, DFH's strong fundamentals and growth trajectory, supported by its strategic initiatives, suggest a favorable investment opportunity [15][16].

Core Viewpoint - Dream Finders Homes Inc. is experiencing a mixed performance in the stock market, with a slight decline in share price but better relative performance compared to the Construction sector and S&P 500 [1] Financial Performance - The upcoming earnings disclosure for Dream Finders Homes Inc. is projected to show earnings per share (EPS) of $0.49, reflecting a 10.91% decrease year-over-year, while revenue is expected to reach $945.3 million, indicating a 14.19% increase compared to the same quarter last year [2] - For the full year, the Zacks Consensus Estimates project earnings of $3.14 per share and revenue of $4.82 billion, representing changes of -5.99% and +8.25% respectively from the prior year [3] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for Dream Finders Homes Inc. are crucial as they reflect changing business trends, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which incorporates estimate changes, currently rates Dream Finders Homes Inc. as 2 (Buy), suggesting a favorable outlook [6] Valuation Metrics - Dream Finders Homes Inc. has a Forward P/E ratio of 7.2, which is lower than the industry average of 8.14, indicating that the company is trading at a discount [7] - The company has a PEG ratio of 1.3, compared to the industry average PEG ratio of 0.96, suggesting that while the company is expected to grow, it is valued higher relative to its growth rate [8] Industry Context - The Building Products - Home Builders industry, to which Dream Finders Homes Inc. belongs, currently has a Zacks Industry Rank of 226, placing it in the bottom 10% of all industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape [9]