How Will DR Horton Stock React To Its Upcoming Earnings?
CHONGQING, CHINA - APRIL 14: In this photo illustration, the D.R. Horton logo is displayed on a ... More smartphone screen, with the company's latest stock price performance and candlestick chart visible in the background, reflecting market volatility and investor sentiment on April 14, 2025, in Chongqing, China. D.R. Horton, Inc. is the largest home construction company in the United States by volume, specializing in the design, construction, and sale of single-family homes across various price segments. (Photo by)
DR Horton, a U.S.-based home construction company, is scheduled to announce its fiscal Q2 results on Thursday, April 17, 2025. Analysts expect earnings of $2.67 per share on revenue of $8.03 billion. These figures represent a 24% decrease in earnings and a 12% decline in revenue from the prior year's $3.52 per share and $9.11 billion, respectively. Historically, the stock has gained after earnings 58% of the time, with a median one-day increase of 3.0% and a maximum surge of 10%.
In the previous quarter (Q1), D.R. Horton saw a 21% year-over-year reduction in its sales order backlog, indicating possible revenue pressures ahead. Successfully navigating market competition and macroeconomic challenges will be essential for the company to maintain its growth trajectory. DR Horton currently holds a market capitalization of $38 billion. Over the last twelve months, it posted $37 billion in revenue, with $5.8 billion in operating profits and net income of $4.7 billion. While near-term stock movements may hinge on earnings performance versus expectations, studying past performance can offer insights for event-driven traders.
For such traders, historical patterns can be advantageous—either by positioning ahead of earnings or by responding after results are released. For those seeking growth with less volatility than individual stocks, the Trefis High-Quality portfolioprovides an alternative, having outpaced the S&P 500 with returns exceeding 91% since launch. See earnings reaction history of all stocks.
Insights from one-day (1D) post-earnings returns include:
Additional stats for 5-Day (5D) and 21-Day (21D) post-earnings returns are included in the table below.
DHI Observed 1D, 5D, and 21D post earnings returns
A more measured strategy—assuming meaningful correlation—is to identify relationships between short- and medium-term post-earnings returns. Traders can then act accordingly. For instance, if 1D and 5D returns exhibit strong correlation, a positive 1D result might justify a 'long' 5-day position. Below is correlation data from both 5-year and 3-year periods. Note: '1D_5D' refers to the correlation between 1-day post-earnings returns and 5-day outcomes.
DHI Correlation Between 1D, 5D and 21D Historical Returns
Learn more about the Trefis RV strategy, which has outperformed its all-cap benchmark (which includes the S&P 500, S&P mid-cap, and Russell 2000), delivering solid returns to investors.
Invest with Trefis
Market Beating Portfolios | Rules-Based Wealth
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Diamondback Energy (FANG) Rises Higher Than Market: Key Facts
In the latest trading session, Diamondback Energy (FANG) closed at $145.57, marking a +2.42% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%. The energy exploration and production company's stock has dropped by 0.55% in the past month, falling short of the Oils-Energy sector's gain of 3% and the S&P 500's gain of 6.29%. The investment community will be closely monitoring the performance of Diamondback Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 39.82% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.41 billion, indicating a 37.23% upward movement from the same quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.23 per share and a revenue of $14.05 billion, representing changes of -20.16% and +26.94%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.89% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold). In terms of valuation, Diamondback Energy is currently trading at a Forward P/E ratio of 10.74. This denotes a premium relative to the industry's average Forward P/E of 10.64. We can additionally observe that FANG currently boasts a PEG ratio of 1.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 2.42 at the close of the market yesterday. The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 178, placing it within the bottom 28% of over 250 industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq futures waver as US-China trade talks progress, inflation print looms
US stock futures wavered as Wall Street digested the progress on US-China trade negotiations and braced for the release of the May inflation report. Futures attached to the Dow Jones Industrial Average (YM=F), the benchmark S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) hovered just below baseline. Meanwhile, on Tuesday in London, representatives from the US and China reached an agreement on a framework and implementation plan to ease trade tensions between the two countries. 'We have reached a framework to implement the Geneva consensus,' US Commerce Secretary Howard Lutnick said. The commerce secretary indicated that the deal should resolve issues between the two countries on rare earths and magnets. Representatives will now take the proposal to their respective leaders for approval. Read more: The latest on Trump's tariffs When the two countries struck a temporary trade agreement in Geneva in May, stocks surged. Since then, though, relations between the US and China deteriorated as both sides accused each other of violating the deal. The latest plan to resolve trade disputes followed two days of renewed trade talks in London. Nevertheless, the upbeat tone surrounding the meetings has helped lift market sentiment. Stocks edged higher on Tuesday, with the S&P 500 and Nasdaq now within striking distance of their all-time closing highs. Meanwhile, the May Consumer Price Index (CPI) report is set for release on Wednesday at 8:30 a.m. ET. Analysts expect to see that inflation increased slightly in the month that followed President Trump's introduction of higher tariff rates. With the Federal Reserve's next policy meeting next week, investors will be wary of any signs that costs associated with tariffs are being passed onto the consumer.
Yahoo
33 minutes ago
- Yahoo
Analysts react to US-China trade agreement
SINGAPORE (Reuters) -U.S. Commerce Secretary Howard Lutnick said that a trade framework and implementation plan agreed with China in London should result in restrictions on rare earths and magnets being resolved. China's Vice Commerce Minister Li Chenggang said earlier the two teams had agreed on implementing their Geneva consensus and would take the agreed framework back to their leaders. QUOTES: CHRIS WESTON, HEAD OF RESEARCH, PEPPERSTONE, MELBOURNE: "The devil will be in the details but the lack of reaction suggests this outcome fully expected. "While clearly a positive outcome, the lack of reaction in S&P500 futures, and the incremental moves seen in CNH or AUD, suggests achieving the framework on the Geneva agreement was fully expected – the details matter, especially around the degree of rare earths bound for the US, and the subsequent freedom for US produced chips to head East, but for now as long as the headlines of talks between the two parties remain constructive, risk assets should remain supported. "The reaction in Chinese equities could be telling and I suspect US equity futures will track developments here closely today." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
