D.R. Horton to Report Q4 Earnings: What's in Store for the Stock?

Core Viewpoint - D.R. Horton Inc. is expected to report its fourth-quarter fiscal 2024 results on October 29, with earnings and revenues anticipated to show a decline compared to the previous year, despite a history of better-than-expected earnings in recent quarters [1][2][3]. Financial Performance - In the last reported quarter, D.R. Horton exceeded the Zacks Consensus Estimate for earnings and revenues by 7.9% and 2.9%, respectively, with earnings and revenues growing 5% and 2% year-over-year [1][2]. - The Zacks Consensus Estimate for the upcoming quarter's earnings per share (EPS) is $4.20, reflecting a 5.6$4.45. Revenue is estimated at $10.25 billion, indicating a 2.4$10 billion and $10.4 billion, down from$10.5 billion a year ago. The Homebuilding segment is expected to see a revenue increase due to a higher number of homes closed, while the Forestar and Rental Property segments may experience weakness [4][5]. - Homebuilding revenues are predicted to grow 5.5% year-over-year to $9.28 billion, with an expected average selling price (ASP) of homes closed at$380,400, down 0.7% year-over-year [6]. Segment Performance - Financial Services revenues are expected to reach $239.7 million, a 9.2$685.8 million, and Forestar revenues are expected to decrease by 18.4% to $448.3 million [7]. Margin Expectations - Higher costs for land, labor, and materials are anticipated to impact margins, with home sales gross margin expected to contract to 24$5.54 billion [10]. Earnings Prediction - The model does not predict an earnings beat for D.R. Horton in the upcoming quarter, as the company has an Earnings ESP of -0.42% and a Zacks Rank of 4 (Sell) [11][12].