DHI
D.R. Horton Inc (DHI) Q3 2026 Earnings Call Highlights: Strong Cash Flow and Home Closures Amid ...
Article Summary
BUY- Horton Inc. (NYSE: DHI) reported solid Q3 2026 earnings with earnings per diluted share of $3.20 and consolidated pretax income of $1.2 billion, with gross profit margin of 20.7% and cash flow from operations of $ 3.4 billion over the past 12 months.
- Horton closed 23,983 homes during the quarter reaching the high end of its guidance range, with 65% of closings to first-time homebuyers highlighting its focus on affordability.
- Homebuilding SG&A expenses increased by 8% compared to last year, with the average closing price flat sequentially and down 2% year-over-year reflecting affordability constraints.
- Full-year delivery outlook was slightly reduced due to lower-than-expected sales rates, while the cancellation rate for the quarter increased to 20%, up from 17% in the prior year period.
- Cash flow remained strong with $6.1 billion in liquidity, and the company returned all of its cash to shareholders through share repurchases and dividends.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -3.5% | 25% | 0.0 ptsDeclining (-3.5%) - NOT a growth stock |
| EPS Growth Next 5Y ? | 5.8% | 25% | 20.0 ptsWeak (5.8%) - Low expectations |
| Target Price Upside ? | 15.9% | 20% | 60.0 ptsModerate Upside (15.9%) - Target: $166.33 vs Current: $143.52 |
| Gross Margin % ? | 22.6% | 15% | 40.0 ptsModerate (22.6%) - Adequate margins |
| Drawdown from 52-Wk High ? | -22.2% | 15% | 40.0 ptsMild Pullback (-22.2%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About DHI
- D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States.
- It engages in the acquisition and development of land; and construction and sale of residential homes in 126 markets across 36 states under the names of D.R.
- Horton. The company also constructs and sells single-family detached homes; and attached homes, such as townhomes and duplexes.
- In addition, it provides mortgage financing and title agency services; and engages in the residential lot development business.
- Further, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; conducts insurance-related operations; and owns water rights and other water-related assets, as well as non-residential real estate, including ranch land and improvements.
- It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.