D.R. Horton (DHI) Stock Falls Ahead of Earnings Report
NEW YORK (TheStreet) -- Shares of D.R. Horton (DHI) - Get Report were falling 2.99% to $28.52 on Monday, ahead of the homebuilder's fiscal fourth quarter earnings report, which is due before the market opens on Tuesday.
Analysts expect D.R. Horton to report earnings of 62 cents a share and revenue of $3.04 billion for the fourth quarter of fiscal 2015 that ended in September
D.R. Horton reported earnings of 60 cents a share for the third quarter of fiscal 2015 that ended in June, beating analysts' estimates of 50 cents a share for the quarter. The company reported revenue of $2.86 billion in the fiscal third quarter, above analysts' estimates of $2.7 billion.
The homebuilder reported earnings of 45 cents a share for the fourth quarter of fiscal 2014, missing analysts' estimates of 48 cents a share. D.R. Horton saw revenue of $2.4 billion in the year-ago quarter, compared to analysts' estimates of $2.38 billion.
TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate D R HORTON INC (DHI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 37.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 87.50% and other important driving factors, this stock has surged by 30.60% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DHI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- D R HORTON INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, D R HORTON INC increased its bottom line by earning $1.51 versus $1.34 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.51).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 95.6% when compared to the same quarter one year prior, rising from $113.20 million to $221.40 million.
- Net operating cash flow has significantly increased by 215.96% to $357.40 million when compared to the same quarter last year. In addition, D R HORTON INC has also vastly surpassed the industry average cash flow growth rate of -144.79%.
- You can view the full analysis from the report here: DHI
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.