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D.R. Horton says demand for homes picked up in the fiscal second quarter.
Daniel Acker/Bloomberg
D.R. Horton stock was jumping after the home builder reported better-than-expected earnings Thursday.
D.R. Horton
(ticker: DHI) reported a profit of $2.73 a share in the fiscal second quarter, easily beating analyst forecasts for $1.93, on sales of $7.97 billion, topping estimates for $6.45 billion.
“Despite higher mortgage rates and inflationary pressures, demand improved during the quarter due to normal seasonal factors, coupled with our use of incentives and pricing adjustments to adapt to changing market conditions,” Donald R. Horton, chairman of D.R. Horton’s board, said in a press release. “Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable.”
That big beat is getting a big reward from the market. D.R. Horton stock has gained 5.8% at 9 a.m. in premarket trading, while
Dow Jones Industrial Average
futures have fallen 0.2%, and
S&P 500
futures have dropped 0.1%.
“Spring selling season is off to an encouraging start,” D.R. Horton CEO David Auld said in prepared remarks during the company’s conference call with investors, referencing the company’s net sales orders, which increased 73% from the first quarter. These net sales orders beat the consensus, actual 23,142 versus an estimated 19,792, according to FactSet. Despite the quarter-over-quarter gain, the metric was 5% lower…
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