D.R. Horton, Inc. (NYSE: DHI), one of the largest homebuilding firms based in Arlington, Texas, is preparing to release its first-quarter earnings report on Tuesday, January 20, prior to the market opening. The company's financial performance in this quarter is under close scrutiny as forecasts suggest a downward trend compared with the same period last year.
According to aggregate data compiled by Benzinga Pro, analysts expect the homebuilder to report earnings of $1.92 per share for the first quarter. This projection marks a significant decrease from the $2.61 per share recorded in the corresponding quarter of the previous year. Likewise, revenue is anticipated to decline, with the consensus estimate standing at approximately $6.65 billion, which is down from $7.61 billion reported one year earlier.
For context, in its most recent quarterly report issued on October 28, the company posted revenue of $9.7 billion, a figure that surpassed analysts’ expectations of around $9.4 billion. However, earnings for that quarter fell short of projections, with $3.04 per share reported against a forecast of $3.28 per share.
In recent market activity preceding the upcoming results, shares of D.R. Horton edged up by 1.1%, closing at $161.00 on the Thursday prior to the earnings release, reflecting modest investor optimism or anticipation.
Analyst Reviews and Rating Adjustments
Leading up to the earnings call, several notable equity analysts have updated their outlooks and target prices for D.R. Horton, reflecting varied perspectives on the company's near-term prospects. These revisions may influence investor sentiment heading into the report.
- Anthony Pettinari from Citigroup has maintained a Neutral rating on the stock but lowered his price target from $163 to $154 as of January 8, 2026. Pettinari’s analyst accuracy rate stands at 75%, underscoring his analytical reliability.
- James McCanless, an analyst with Citizens, downgraded D.R. Horton’s rating from Market Outperform to Market Perform on January 7, 2026. His accuracy score is reported at 68%, reflecting moderate historical alignment with market outcomes.
- UBS analyst John Lovallo retained a Buy rating but reduced the price target slightly from $195 to $191 on January 6, 2026. Lovallo’s 70% accuracy rate places him among the more dependable equity observers.
- At Wells Fargo, analyst Sam Reid adjusted the rating from Overweight to Equal-Weight and trimmed the price objective from $180 to $155 on January 6, 2026. His accuracy rate is noted at 66%.
- Matthew Bouley at Barclays sustained an Equal-Weight rating and notably raised his price target from $110 to $132 on December 8, 2025. Bouley’s track record shows an accuracy rate of 68%.
These modifications highlight a cautious but nuanced perspective across brokerage firms, balancing revised expectations for earnings and revenue with potential market risks.
Key Considerations Ahead of Earnings
Investors and stakeholders face several critical factors as D.R. Horton approaches its Q1 earnings release:
- Decline in earnings per share and revenue: Projections indicate a material decrease, which could weigh on investor confidence or prompt reassessment of forecasts.
- Recent stock performance: The modest 1.1% uptick prior to earnings suggests tempered but positive market sentiment despite expected declines.
- Analyst rating adjustments: Varying shifts in price targets and ratings reflect differing interpretations of company fundamentals and market conditions.
- Historical earnings variance: The previous quarter demonstrated revenue outperformance but earnings shortfall versus estimates, a duality that may influence investor expectations.
Risks and Uncertainties
Several potential uncertainties could affect the company’s upcoming financial results and market response:
- The anticipated decrease in both earnings and revenue could signify operational or market challenges facing the firm.
- Revised analyst price targets and downgrades may affect short-term stock momentum and investor sentiment.
- Economic conditions impacting housing market demand could introduce volatility in revenue streams and profitability.
- Deviations from analyst expectations in the imminent report, whether positive or negative, could trigger stock price adjustments.
Given this backdrop, market participants will be closely evaluating the detailed earnings report scheduled for release on January 20 to gauge D.R. Horton’s operational health and market positioning.