D.R. Horton Q1 EPS Seen Falling 24.9% to $1.96 on $6.65B Revenue
D.R. Horton is forecast to report Q1 EPS of $1.96, a 24.9% year-over-year decline, on projected revenue of $6.65 billion, down 11.9% from a year earlier. Consensus EPS estimates have been revised down 1.7% in the past month as the company readies its Jan. 20 pre-market earnings release.
1. Earnings and Revenue Outlook
D.R. Horton is forecast to report first‐quarter earnings per share of $1.96, representing a year-over-year decline of 24.9%. Revenue is expected to fall by 11.9% to approximately $6.65 billion. The anticipated drop in profitability and sales volume reflects persistent affordability pressures in key markets and a slowdown in contract signings over the past quarter.
2. Analyst Estimate Revisions
Over the last 30 days, consensus EPS estimates for the upcoming quarter have been revised downward by 1.7%, signaling that analysts are adjusting expectations for D.R. Horton’s near-term performance. Such downward revisions often presage cautious investor sentiment and can influence stock performance around the earnings release scheduled for January 20, 2026.
3. Balance Sheet and Liquidity Position
D.R. Horton maintains a robust liquidity profile, with a current ratio of 17.39, indicating strong capacity to meet short-term obligations. Its debt-to-equity ratio stands at a conservative 0.25, underscoring a low reliance on leverage. This financial flexibility provides a buffer against potential volatility in mortgage rates and input costs.
4. Valuation Metrics
Market valuation for D.R. Horton remains moderate, with a price-to-earnings ratio near 13.3 and a price-to-sales ratio of around 1.37. The enterprise value to sales multiple is about 1.46, while the earnings yield sits at approximately 7.52%. These metrics suggest that investors are pricing in both near-term headwinds and the company’s long-term leadership in the homebuilding sector.