D.R. Horton Faces Slower Home Sales, Margin Pressure, Oppenheimer Says

12:07 PM EDT, 10/13/2026 (MT Newswires) -- D.R. Horton (DHI) faces weakening prospects in fiscal 2027 as home-selling conditions soften, margins erode and closings stall, Oppenheimer said Tuesday in a report. Oppenheimer expects full-year earnings per share of $10.68, down from its prior $11.48 forecast, citing flat closings, about 50 basis points of additional gross-margin erosion and higher operating costs. Its estimate is about 8% below the Wall Street consensus, which assumes closings growth and stable margin, the report said. For fiscal Q4, Oppenheimer projects EPS of $2.97, roughly 2% below the consensus, noting the company has missed the midpoint of its Q4 closings guidance for five straight years and its gross-margin forecast in three of the past four. D.R. Horton is expected to project Q1 gross margin below Q4 due to higher mortgage rates, year-end competition, stronger lumber prices and lot-cost inflation, the report said. Q4 results are expected Oct. 29. Oppenheimer reiterated its perform rating on D.R. Horton stock. Price: 134.83, Change: +0.53, Percent Change: +0.40