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Can DR Horton Meet These Numbers?

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Checking expectations

DR Horton (NYSE: DHI) is expected to report Q2 earnings on April 26. 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 DR Horton's revenues will grow 32.9% and EPS will grow 46.2%.

The average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $0.19.

Revenue details
Last quarter, DR Horton tallied revenue of $1.28 billion. GAAP reported sales were 41% higher than the prior-year quarter's $906.6 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 $0.20. GAAP EPS of $0.20 for Q1 were 122% 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 19.6%, 260 basis points better than the prior-year quarter. Operating margin was 8.6%, 470 basis points better than the prior-year quarter. Net margin was 5.2%, 210 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.21 billion. The average EPS estimate is $1.04.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 586 members out of 1,139 rating the stock outperform, and 553 members rating it underperform. Among 297 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give DR Horton a green thumbs-up, and 140 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DR Horton is outperform, with an average price target of $21.23.

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Stocks Mentioned

D.R. Horton, Inc. Stock Quote
D.R. Horton, Inc.
DHI
$68.98 (5.10%) $3.35

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