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D.R. Horton (DHI) exceeded Wall Street expectations for first quarter revenue and profit on Tuesday. Though, the company saw a slight drop in home sales, reporting net home sales to have decreased by over 1% year-over-year to just under 18,000 homes.
Zelman & Associates managing director Alan Ratner joins Wealth to highlight the homebuilder's consistent outlook for 2025:
"The [first] quarter itself was generally in line with expectations. If we kind of rewind three months ago, D.R. Horton, the largest builder in the country, came out with a pretty tepid outlook for [2025]."
Ratner explains it was generally a “flattish volume outlook” and believes these factors may have “kind of set forth a sell off in the homebuilding stocks throughout most of the fourth quarter.”
Ratner also stresses the importance of D.R. Horton and other homebuilders who seek to alleviate pricing pressures for homebuyers: “The number one thing they're focused on, regardless of what comes about from the Trump administration, is building affordable homes."
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He points to the Trump administration's tariffs and deportation policies that could hinder the industry's growth.
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This post was written by Josh Lynch