D.R. Horton Sees 24.9% EPS Drop, $6.65B Q4 Revenue Forecast Ahead of Jan. 20 Results
D.R. Horton will report Q4 results on Jan. 20 with consensus EPS of $1.96 (-24.9% YoY) and revenue forecast of $6.65B (-11.9% YoY). Analysts have trimmed EPS estimates by 1.7% over the past month, while the builder maintains strong liquidity (current ratio 17.39) and low leverage (debt/equity 0.25).
1. Quarterly Earnings Forecast
D.R. Horton is set to report earnings before markets open on January 20, 2026, with analysts forecasting earnings per share of $1.96 for the quarter ending December 2025. This forecast represents a 24.9% decline from the $2.61 per share posted in the same quarter a year earlier. Revenue is projected at approximately $6.65 billion, down 11.9% year-over-year from $7.54 billion, reflecting continued pressure from higher mortgage rates and slowing homebuying demand.
2. Analyst Estimate Revisions
Over the past 30 days, the consensus earnings estimate for D.R. Horton has been revised downward by 1.7%, signaling analysts’ growing caution ahead of the upcoming release. These revisions follow three straight quarters of margin compression driven by rising raw material costs and labor shortages. Historical data suggests that downward revisions on the eve of earnings often correlate with muted share price reactions at the open.
3. Financial Health and Valuation Metrics
D.R. Horton maintains a strong liquidity position with a current ratio of 17.39, indicating ample short-term assets to cover liabilities. The debt-to-equity ratio stands at 0.25, underscoring a conservative capital structure. On valuation, the company trades at a price-to-earnings ratio of 13.30 and a price-to-sales multiple of 1.37, while its enterprise value to sales ratio is 1.46. An earnings yield of 7.52% highlights the income-generating potential of its shares relative to price.