Published On: Thu, Apr 25th, 2019

D.R. Horton beats expectations for quarter, gives soft 2019 forecast

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FILE PHOTO: A house built by the D.R. Horton company is seen for sale in Arvada
FILE PHOTO: A house built by the D.R. Horton company is seen for sale in Arvada, Colorado January 24, 2017. REUTERS/Rick Wilking/File Photo

April 25, 2019

(Reuters) – D.R. Horton Inc, the biggest U.S. homebuilder, on Thursday was the latest to show strong quarterly results from the lowering of U.S. mortgage interest rates, while giving a forecast for 2019 revenue that fell short of analysts’ expectations.

Shares in the company were flat in trading before the bell as evidence of another rise in costs in the quarter offset a 6.2 percent rise in orders to 16,805 homes, just above analysts’ estimates of 16,695 homes.

The company forecast full-year revenue between $16.7 billion and $17.0 billion, compared to analysts’ estimates of $17.16 billion.

The company said it expects to deliver between 55,000 homes and 56,000 homes in 2019. Analysts on average were expecting home sales of 55,668 homes.

Costs in the quarter rose 10 percent to $3.26 billion.

Despite the strengthening housing market fundamentals, land and labor shortages are constraining builders’ ability to break more ground on lower-priced housing projects.

Horton said it sold 13,480 homes in the quarter, up from 12,281 a year ago.

Net income attributable to the company was $351.3 million, or 93 cents per share, in the second-quarter ended March 31, from $351.0 million, or 91 cents per share, a year earlier.

Revenue rose to $4.13 billion from $3.79 billion.

Excluding items, the company reported a profit of 87 cents, according to IBES data from Refinitiv.

Analysts, on average, expected a profit of 86 cents per share on revenue of $4.05 billion.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Shailesh Kuber)



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