Home construction company D.R. Horton (NYSE:DHI) fell in trading after the company’s first-quarter earnings fell short of analysts’ estimates. The company reported Q1 diluted earnings of $2.82 per share, up by 2% year-over-year but missing analysts’ estimates of $2.87 per share.
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In the first quarter, the company generated net revenues of $7.7 billion, up by 6% year-over-year and surpassing analysts’ estimates of $7.55 billion. D.R. Horton’s net sales orders increased 35% year-over-year to 18,069 homes, while the value of net sales orders surged by 38% year-over-year to $6.8 billion.
In addition, D.R. Horton declared a quarterly cash dividend of $0.30 per common share that is payable on February 13 to stockholders of record on February 6, 2024.
Looking forward, the company updated its FY24 guidance and now expects revenues in the range of $36 billion to $37.3 billion. DHI has also forecast homes closed by homebuilding operations in the range of 87,000 homes to 90,000 homes.
Is DHI a Good Investment?
Analysts remain cautiously optimistic about DHI stock with a Moderate Buy consensus rating based on 12 Buys, five Holds, and one Sell. Over the past year, DHI stock went up by more than 50%, and the average DHI price target of $160.69 implies an upside potential of 12.7% at current levels.
