D.R. Horton Faces Slower Home Sales, Margin Pressure, Oppenheimer Says

MT Newswires Live10-14

D.R. Horton (DHI) faces weakening prospects in fiscal 2027 as home-selling conditions soften, margins erode and closings stall, Oppenheimer said Tuesday in a report.

Oppenheimer expects full-year earnings per share of $10.68, down from its prior $11.48 forecast, citing flat closings, about 50 basis points of additional gross-margin erosion and higher operating costs. Its estimate is about 8% below the Wall Street consensus, which assumes closings growth and stable margin, the report said.

For fiscal Q4, Oppenheimer projects EPS of $2.97, roughly 2% below the consensus, noting the company has missed the midpoint of its Q4 closings guidance for five straight years and its gross-margin forecast in three of the past four.

D.R. Horton is expected to project Q1 gross margin below Q4 due to higher mortgage rates, year-end competition, stronger lumber prices and lot-cost inflation, the report said.

Q4 results are expected Oct. 29.

Oppenheimer reiterated its perform rating on D.R. Horton stock.

Price: 134.83, Change: +0.53, Percent Change: +0.40

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