D.R. Horton (NYSE:DHI) shares were up as much as 8% in pre-market Thursday after the homebuilder smashed analyst estimates for its third fiscal quarter.
The company reported FQ3 EPS of $3.90, crushing the analyst estimate of $2.78. Revenue for the quarter rose 11% year-over-year to $9.73 billion, easily topping the $8.2B expected by analysts.
DHI said it saw a 37% surge in net sales orders to 22,879 in the fiscal third quarter, generating revenue of $8.7B. Analysts were expecting $7.74B in revenues from net sales orders.
Another positive was that the cancellation rate fell 600 basis points annually to 18%.
“Despite continued higher mortgage rates and inflationary pressures, our net sales orders increased 37% from the prior-year quarter, as the supply of both new and existing homes at affordable price points remains limited and demographics supporting housing demand remain favorable,” said Donald R. Horton, chairman of the board.
“We are well-positioned with our experienced operators, diverse product offerings and flexible lot supply and are focused on supplying more homes to meet market demand and maximizing returns and capital efficiency in each of our communities.”
As a result, the company said it now sees full-year revenue at $34.9B, up or down $200 million. Analysts were looking for $32.3B in FY sales.