US homebuilder DR Horton’s annual revenue forecast beats estimates
US homebuilder DR Horton on Thursday (Apr 20) forecast full-year revenue above estimates after reporting better-than-expected quarterly results, helped by elevated property prices amid tight supply.
Shares of America’s largest homebuilder rose 3.6 per cent to US$105.5 in premarket trade.
“Despite higher mortgage rates and inflationary pressures, demand improved during the quarter due to normal seasonal factors,” DR Horton chairman Donald Horton said.
Mortgage rates, which in February had resumed their upward trend, started declining in tandem with US Treasury yields after the turmoil in the banking sector last month, pulling some buyers back into the market.
The Arlington-based homebuilder forecast 2023 revenue between US$31.5 billion and US$33.0 billion, above analysts’ estimates of US$28.5 billion, according to Refinitiv.
“Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favourable,” Horton added.
DR Horton posted revenue of US$7.97 billion, compared with analysts’ average estimate of US$6.47 billion.
It reported net income of US$2.73 per diluted share compared with estimates of US$1.93 a share. REUTERS
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