By Sam Boughedda
DR Horton Inc (NYSE:DHI) shares are up 7% Wednesday despite the company's share initially falling premarket in reaction to its fourth-quarter earnings report, which saw it miss profit and revenue estimates.
The housebuilder reported fourth-quarter earnings of $4.67, $0.51 worse than the analyst estimate of $5.18, while revenue for the quarter came in at $9.64 billion versus the consensus estimate of $10.17B.
Net sales orders for the fourth quarter ended September 30, decreased 15% to 13,582 homes and 10% in value to $5.4B compared to 15,949 homes and $6.0B in the same quarter of fiscal 2021, the company stated. In addition, the cancellation rate for Q4 was 32% compared to 19% in the prior-year quarter.
The company stated that during most of the year, demand for its homes was strong, but beginning in June and continuing through today, they have seen a moderation in housing demand caused by significant increases in mortgage interest rates and general economic uncertainty.
"While these pressures may persist for some time, the supply of homes at affordable price points remains limited, and demographics supporting housing demand remain favorable," added Donald R. Horton, Chairman of the company's board.