NEW YORK (TheStreet) -- Shares of D R Horton (DHI) are down -11.29% to $22. on very heavy trading volume, as the country's biggest homebuilder by revenue fell the most in nearly five years after saying it's increasing incentives to boost orders, reducing profitability as the broader new home market stumbles, Bloomberg reports
The company said that net income for the third quarter ending June 30 declined to $113.1 million, or 32 cents a share, from $146 million, or 42 cents, a year ago.
The average estimate of 10 analysts was 49 cents a share, according to Bloomberg data.
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TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate D R HORTON INC (DHI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, attractive valuation levels, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: