D.R. Horton (NYSE:DHI) shares gained over 3% intra-day today despite the homebuilding giant reporting quarterly earnings that fell short of expectations and revising its full-year outlook lower.
For the second quarter, the company posted earnings of $2.58 per share, below the $2.67 analysts had forecast. Revenue came in stronger at $7.7 billion, exceeding expectations but marking a 15% year-over-year decline from $9.1 billion.
The slowdown in sales was attributed to hesitant buyer behavior amid affordability pressures and softening consumer sentiment. Net sales orders dropped 15% year-over-year to 22,437 homes, with a total value of $8.4 billion. Closings also declined by 15%, totaling 19,276 units for the quarter.
D.R. Horton also trimmed its full-year revenue guidance to between $33.3 billion and $34.8 billion, falling short of the $36.14 billion consensus, reflecting continued headwinds in the housing market as higher borrowing costs weigh on demand.
