Shares of DR Horton Inc. (DHI) dropped modestly Friday after the homebuilding company reported weaker than expected earnings for the first quarter of 2019. Revenues, meanwhile, increased and topped the street view, benefitting from favorable pricing and strong demand for new homes.
First-quarter revenues grew 5.6% to $3.52 billion and came in above analysts’ estimate. Net income attributable to shareholders increased to $287.2 million or $0.76 per share from $189.3 million or $0.49 per share a year earlier but fell short of expectations.
At $3.4 billion, homebuilding revenue was up 6% compared to the year-ago quarter. Home closures advanced 7% to 11,500 units, while net sales orders rose by 3% to 11,042 units.
DR Horton purchased the homebuilding operations of Westport Homes, Classic Builders, and Terramor Homes for about $321 million in the second half of last year. During the December quarter, the management repurchased 4.1 million shares for $140.6 million. Recently, the company declared a quarterly cash dividend of $0.15 per share, to be paid on February 25, 2019, to stockholders of record on February 11, 2019.
DR Horton has purchased the homebuilding operations of Westport Homes, Classic Builders, and Terramor Homes for about $321 million
“Sales prices for both new and existing homes have increased across most of our markets over the past several years, which coupled with rising interest rates has impacted affordability and resulted in some moderation of demand for homes, particularly at higher price points,” said, Donald Horton, chairman of the board.
Looking ahead, the company expects the homebuilding sector to benefit from the favorable supply-demand variation, booming economy and credit availability. It is anticipated that the positive factors, combined with DR Horton’s superior product offerings, will drive growth in the upcoming quarters.
The domestic housing market has been going through a period of uncertainty, with rising mortgage rates and higher prices dampening demand across the market.
DR Horton shares closed the last trading session up 3%. The stock, which lost about 24% in the last twelve months, declined Friday after the earnings report.
On the heels of lawmakers moving closer to passing the stimulus bill, inflations concerns gripped the market after Federal Reserve chief Jerome Powell at a meeting said the reopening would
Though the retail boom triggered by the pandemic was estimated to be short-lived initially, the shopping spree continued as customers stocked up on essential items, concerned about the persistent market
Shares of Gap Inc. (NYSE: GPS) were up 5.8% in afternoon hours on Friday. The stock has gained 103% over the past 12 months. Gap reported mixed results for the