DR Horton Earnings Are on Deck

DR Horton (NYSE: DHI  ) is expected to report Q1 earnings on Jan. 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DR Horton's revenues will increase 24.9% and EPS will increase 55.6%.

The average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.14.

Revenue details
Last quarter, DR Horton tallied revenue of $1.34 billion. GAAP reported sales were 22% higher than the prior-year quarter's $1.10 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.30. GAAP EPS of $0.30 for Q4 were 173% higher than the prior-year quarter's $0.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 18.5%, 220 basis points better than the prior-year quarter. Operating margin was 7.6%, 260 basis points better than the prior-year quarter. Net margin was 7.5%, 420 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.68 billion. The average EPS estimate is $0.91.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 578 members out of 1,140 rating the stock outperform, and 562 members rating it underperform. Among 322 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give DR Horton a green thumbs-up, and 156 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DR Horton is outperform, with an average price target of $20.75.

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