Shares of D.R. Horton (DHI) are up 3% after the largest U.S. home builder reported first quarter financial results that beat Wall Street forecasts and raised its forward guidance.
The Arlington, Texas-based company reported earnings per share (EPS) of $3.52 U.S. on revenue of $9.1 billion U.S.
That was better than earnings of $3.07 U.S. a share on revenue of $8.15 billion U.S. that was expected among analysts who track the company’s progress.
The number of new homes ordered during Q1 rose 14.3% to 26,456 while the value of new orders jumped 17.4% to $10.1 billion U.S., said the company.
Those numbers also beat the consensus outlook for new home orders of 26,353 and the value of new orders of $9.88 billion U.S.
The average price for a new home ordered by the company was $381,766 U.S., up 4.8% from a year earlier.
Along with the strong Q1 results, D.R. Horton raised its forward guidance, saying it now expects fiscal 2024 revenue of $36.7 billion U.S. to $37.7 billion U.S., up from $36 billion U.S. to $37.3 billion U.S. previously.
The strong earnings and share price gains are welcome news at D.R. Horton.
The company’s stock had declined 10% in April as Treasury yields, and by extension mortgage rates, have risen, putting new home purchases out of reach for many people.
Prior to today (April 18), D.R. Hortons’ stock had declined 3% on the year to trade at $145.74 U.S. per share.