D.R. Horton Stock Jumps on Beat
NEW YORK (TheStreet) -- DR Horton (DHI) - Get Report posted better-than-expected second-quarter earnings but warned that market conditions in the homebuilding industry are still challenging.
Shares of D.R. Horton have, in response, jumped in Friday morning by 6.5% to $15.19.
However, new home inventory remains low, interest rates are favorable and housing affordability is near record highs, the company said.
DR Horton reported net income for its second fiscal quarter of $11.4 million, or 4 cents a share, compared with a net loss of $108.6 million, or 34 cents a share, the year before. Analysts on average were expecting a penny loss.
Homebuilding revenue increased 16% to $896.8 million as homes closed increased 19%, net sales orders increased 55%, and the company's sales order backlog of homes under contract at March 31 increased 38%.
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The company said its focus on providing affordable homes enabled it to take advantage of demand during the spring selling season.
-- Reported by Andrea Tse in New York
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