D.R. Horton Soars After Earnings Beat Despite Macroeconomic Challenges

D.R. Horton (DHI) shares surged in intraday trading Thursday after the company topped third-quarter expectations on the top and bottom lines.

The Arlington, Texas-based company reported earnings per share (EPS) of $4.10, up 5% year-over-year. Revenue improved more than 2% to $9.97 billion, also higher than consensus analysts’ estimates. 

D.R. Horton closed 24,155 new homes in the quarter, up 5% from the year-ago quarter and above consensus. The value of homes closed grew more than 6% to $9.23 billion, good for an average closing price of more than $380,000. 

However, the company posted just 23,001 new sales orders with a total value of $8.7 billion in the period, falling short of the 24,664 orders and $9.31 billion in value called for by Visible Alpha consensus. 

‘Inflation and Mortgage Interest Rates Remain Elevated’

Executive chair David Auld acknowledged macroeconomic challenges. 

“Although inflation and mortgage interest rates remain elevated, the supply of both new and existing homes at affordable price points is still limited, and demographics supporting housing demand continue to be favorable,” Auld said.

Looking ahead, D.R. Horton narrowed its full-year revenue projection to between $36.8 billion and $37.2 billion from a prior estimate of $36.7 billion to $37.7 billion. The company also now expects to close 90,000 to 95,000 homes in fiscal 2024, up slightly from 89,000 to 91,000. 

D.R. Horton stock soared more than 11% to $175.35 around noon ET Thursday.