D.R. Horton Faces Market Challenges as Q2 Results Are Mixed

Headquartered in Arlington, Texas, D.R. Horton, Inc. (DHI) is a leader in acquiring and developing land, as well as constructing and selling residential homes. With a market capitalization of $37.5 billion, the company operates across the East, North, Southeast, South Central, Southwest, and Northwest regions of the United States.

Performance Overview

Over the past year, D.R. Horton has struggled in comparison to the broader market. The stock has declined by 18.4% in the last 52 weeks and 12.7% year-to-date, while the S&P 500 Index rose 8.6% during the same period, despite a 3.8% expected decline in 2025.

Comparison with Industry Benchmarks

Further narrowing the focus, D.R. Horton’s performance also lagged behind the SPDR S&P Homebuilders ETF (XHB), which experienced a 10.4% decline over the last year and a 7.8% drop in 2025.

Q2 Results

D.R. Horton’s stock price rose 3.2% following the release of its mixed Q2 results on April 17. Despite the increase, the company contends with a continued real estate affordability crisis, macroeconomic uncertainties, and declining consumer confidence, which have pressured its orders and construction revenues. For the quarter, its total revenue fell 15.1% year-over-year to $7.7 billion, while net income to shareholders decreased by 30.9% to $810.4 million.

Shareholder Return Initiatives

Despite these challenges, D.R. Horton has demonstrated a commitment to its shareholders. The company repurchased $1.4 billion in equity shares during the quarter, reducing the outstanding share count by 7% compared to the previous year. Additionally, D.R. Horton has increased its overall dividend payments from $99.2 million last year to $125.5 million this quarter.

Future Earnings Projections

Looking ahead to FY25, which ends in September, analysts predict DHI will achieve an earnings per share (EPS) of $11.41, down from $14.34 in FY24. The company has exhibited a mixed earnings surprise history; it exceeded analyst expectations twice over the last four quarters while missing projections twice.

Analyst Ratings

D.R. Horton currently holds a consensus rating of “Moderate Buy.” Among the 19 analysts covering the stock, there are nine “Strong Buys,” eight “Holds,” and two “Strong Sells.” This is a slight improvement compared to three months ago, when only eight analysts issued “Strong Buy” recommendations.

Analyst Price Targets

On April 22, Jade Rahmani of Keefe, Bruyette & Woods maintained a “Market Perform” rating for DHI while significantly lowering the price target from $165 to $135. Currently, D.R. Horton has a mean price target of $152.81, indicating a potential upside of 25.2% from current levels. The highest target from analysts suggests an impressive upside potential of 80.3%, projecting a target price of $220.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.