U.S. homebuilder D.R. Horton (DRI) - Get Report reported better-than-expected fiscal second-quarter earnings on Thursday amid ongoing demand for new homes among consumers, driven by a pause in interest rates.
Net income in the company's fiscal second quarter ended March 31 was $351.3 million, or 93 cents a share, compared with $351 million, or 91 cents a share, in the same quarter of fiscal 2018. Analysts polled by FactSet had been expecting earnings of 86 cents a share.
Sales orders increased 6% to 16,805 homes and 4% in value to $4.9 billion, compared with 15,828 homes and $4.7 billion in the comparable year-earlier quarter, the company said.
The housing market has shown signs of revival amid a pause in mortgage rates, which have drifted lower following the Federal Reserve's recent signals that it plans to keep its policy-setting fed funds rate where it is.
Applications for home loans recently hit a nine-year peak and new home sales in March posted a 16-month high.
Shares of D.R. Horton dropped 4.78%, or $2.23, to $44.44 in early trading on Thursday.