02:52 PM EST, 01/17/2025 (MT Newswires) -- D.R. Horton ( DHI ) is expected to report fiscal Q1 earnings per share of $2.24, which would fall short of the $2.44 consensus estimate as the company tackles rising land and land development costs, as well as volatile mortgage rates, Wedbush said in an earnings preview Friday.

The firm said that "the consensus expectation for fiscal Q1 may be a difficult target to achieve," for the homebuilder, given recent industry and company trends of missing gross margin targets and issuing worse-than-expected forward guidance as well as due to mortgage rate volatility.

The company's earnings are scheduled for Tuesday.

Wedbush said that D.R. Horton's ( DHI ) focus on strict land underwriting is reflected in guidance and likely indicates a shift from a "pro-cyclical, volume at all cost strategy."

The brokerage reiterated a neutral rating on D.R. Horton's ( DHI ) stock with a $180 price target.

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