NEW YORK ( TheStreet) -- DR Horton ( DHI) 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%.
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 Follow TheStreet.com on Twitter and become a fan on Facebook.