NEW YORK (TheStreet) -- D.R. Horton (DHI) - Get Report shares are higher by 2.06% to $27.29 in mid-morning trading on Tuesday, following the release of the homebuilder's third quarter earnings results.
The company reported third quarter net income of $224.1 million, or 60 cents per diluted share on revenue that spiked 36.8% year over year to $2.88 billion.
Analysts on average were expecting D.R Horton to report earnings of 50 cents per share on revenue of $2.76 billion.
The company benefited from a recovering housing market as it reported that the value of homes closed for the third quarter increased by 37% over the year ago period, to $2.9 billion, while net sales orders increased by 25% in value to $3 billion.
"We are well-positioned to finish our fiscal year strong and have an even stronger fiscal 2016 with 12,761 homes in backlog, a robust community count, finished lot supply and inventory of homes available for sale and our diversified D.R. Horton, Emerald Homes and Express Homes product offerings," the company said in a statement.
Separately, TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate D R HORTON INC (DHI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."