Ahead of the Bell: D.R. Horton shares drop in premarket

Shares dropped 81 cents, or 5.1 percent, to $15.16 ahead of the opening bell.

Deutsche Bank analyst Nishu Sood said D.R. Horton's $834.1 million in fiscal second-quarter write-downs brings it more in line with many of its peers, though the homebuilder appears less exposed to the housing market turmoil than others.

Previously, homebuilders with more-developed land have said their impairment charges were mostly over, yet results from those builders with less-developed land -such as D.R. Horton -show the opposite, Sood said.

"In prior quarters, D.R. Horton's impairments had lagged those of the group, especially considering its land supply," Sood said in a note to clients. "However, with an $834 million impairment charge most of the gap has closed."

Sood rates shares "Hold" and has a $14 price target, implying he expects the stock to fall about 12 percent from Monday's $15.97 close.