D.R. Horton Misses Q4 Estimates: Rising Inventory, FY25 Outlook Below Consensus Amid Cautious Homebuyers
Portfolio Pulse from Lekha Gupta
D.R. Horton reported Q4 results with sales and EPS missing estimates, leading to a 10.2% drop in share price. The company faces challenges with rising inventory and a cautious homebuyer market. FY25 revenue outlook is below consensus, but the company is focusing on affordable housing and increased dividends.

October 29, 2024 | 12:39 pm
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NEGATIVE IMPACT
D.R. Horton missed Q4 estimates, with sales and EPS below expectations. Rising inventory and cautious homebuyers are challenges. FY25 revenue outlook is below consensus, but the company is focusing on affordable housing and increased dividends.
D.R. Horton's Q4 results missed expectations, leading to a significant drop in share price. The company's FY25 revenue outlook is below consensus, indicating potential challenges ahead. However, the focus on affordable housing and increased dividends may provide some support.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
IShares U.S. Home Construction ETF, which includes D.R. Horton, may be impacted by D.R. Horton's Q4 results and outlook. The ETF could see short-term pressure due to D.R. Horton's significant share price drop.
D.R. Horton is a significant component of the IShares U.S. Home Construction ETF. The company's disappointing Q4 results and share price drop could negatively impact the ETF in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Invesco Building & Construction ETF, which includes D.R. Horton, may experience short-term pressure due to D.R. Horton's Q4 results and share price decline.
D.R. Horton is part of the Invesco Building & Construction ETF. The company's Q4 performance and share price decline may negatively affect the ETF in the short term.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50