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Key Takeaways
- D.R. Horton shares tumbled 12% Tuesday morning to lead S&P 500 decliners as the homebuilder’s fourth-quarter results and 2025 outlook fell short of analysts’ expectations.
- Quarterly revenue and profit both fell from last year, as the company said lower mortgage rates weren’t driving sales as much as expected.
- The company’s revenue projections for fiscal 2025 also came in well below estimates.
Shares of homebuilder D.R. Horton (DHI) sank 12% Tuesday morning to lead S&P 500 decliners after the company’s fourth-quarter results and projections for fiscal 2025 both fell short of analysts’ expectations.
For the fourth quarter of fiscal 2024, D.R. Horton reported $10.00 billion in revenue, down from $10.50 billion the same time last year and below the $10.22 billion consensus estimate of analysts compiled by Visible Alpha.
The homebuilder reported $1.28 billion in net income, down from $1.51 billion and below the $1.37 billion analysts expected.
D.R. Horton’s outlook for fiscal 2025 revenue also came in short of analysts’ estimates. The company said it expects revenue between $36 billion and $37.5 billion, well below the $39.39 billion expectation.
Potential Homebuyers Seen Holding Out for Lower Mortgage Rates
Executive chairman David Auld said sales were slower than the company expected in the quarter. “While mortgage rates have decreased from their highs earlier this year, many potential homebuyers expect rates to be lower in 2025,” Auld said.
D.R. Horton sank shortly after the market opened to $157.57, their lowest point since July.