What Does Wall Street See for D.R. Horton's Q3?

D.R. Horton (NYSE: DHI  ) is expected to report Q3 earnings on July 27. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict D.R. Horton's revenues will improve 19.0% and EPS will grow 133.3%.

The average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.21.

Revenue details
Last quarter, D.R. Horton tallied revenue of $961.2 million. GAAP reported sales were 28% higher than the prior-year quarter's $751.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.13. GAAP EPS of $0.13 for Q2 were 44% higher than the prior-year quarter's $0.09 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 18.0%, 190 basis points better than the prior-year quarter. Operating margin was 4.7%, 500 basis points better than the prior-year quarter. Net margin was 4.2%, 50 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $4.35 billion. The average EPS estimate is $0.68.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 566 members out of 1,136 rating the stock outperform, and 570 members rating it underperform. Among 336 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give D.R. Horton a green thumbs-up, and 192 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on D.R. Horton is hold, with an average price target of $15.91.

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