Jules Financial Enterprise

2755 South Federal Highway Suite #4, Boynton Beach, FL 33435
Contact Person: Job J. Jules
P: 561-234-6700

DR Horton shares rise premarket as earnings beat offsets soft guidance

Economy, Finance

Shares of homebuilder D.R. Horton Inc. rose 1.4% in premarket trade Tuesday, after it beat earnings estimates for its fiscal fourth quarter ended Sept. 30. The Arlington, Tx.-based company said it had net income of $1.339 billion, or $3.70 a share, for the quarter, up from $829.0 million, or $2.24 a share, in the year-earlier period. Revenue rose to $8.109 billion from $6.400 billion a year ago. The FactSet consensus was for EPS of $3.39 and revenue of $7.829 billion. Homebuilding revenue rose 24% to $7.6 billion from $6.2 billion in the same quarter of fiscal 2020. Homes closed in the quarter increased 8% to 21,937 homes. “Housing market conditions remain very robust, with homebuyer demand exceeding our current capacity to deliver homes across most of our markets,” Chairman Donald R. Horton said in a statement. However, “we have continued to experience significant disruptions in our supply chain, including shortages and delivery delays in certain building materials along with tightness in the labor market,” he said. The company has intentionally restricted its home sales pace by selling homes later in the construction cycle “to align with our production levels and better ensure the certainty of home close dates for our homebuyers.”
The company is now expecting fiscal 2022 revenue of $32.5 billion to $33.5 billion, compared with a current FactSet consensus of $40.3 billion. Shares have gained 34.5% in the year to date, while the S&P 500 has gained 25%.

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