Homebuilder DR Horton issued its fiscal second-quarter results Monday, surpassing Wall Street expectations in both earnings and revenue as Americans cautiously returned to the new home buying market. Shares of the Fort Worth, Texas home builder nonetheless fell over 2 percent in the first few hours of trading Monday amid a broad-based market decline.
In the three months ended March 31st, DR Horton's net income totaled $40.6 million, or 13 cents a share, a stout improvement from the builder's earnings of $27.8 million, or 9 cents a share, in the same period a year earlier. The profit also surpassed Wall Street expectations, as a group of economists in a recent Bloomberg poll projected earnings of 3 cents per share on average. It also marks the fifth straight quarter in which DR Horton posted a profit.
The US Commerce Department is slated to issue a report on new home sales in March on Tuesday. Economists have projected the report will show that sales rose to a 318,000 annual pace, which would represent a 1.6 percent increase over February's numbers and a 4.3 percent year-to-year gain. DR Horton's quarterly report backed up those expectations, as the builder posted sales growth in each of the regions in which it operates.
Compared to the year-ago period, DR Horton's revenue for the first three months of the year surged more than 25 percent to $935 million as orders increased 19 percent to a total of 5,900 units. The builder's backlog of properties currently being built, meanwhile, rose 17 percent to nearly 6,200. The number of home sales closed by the builder during the quarter was 4,240, up 21 percent from a year ago.