Home builder D.R. Horton Inc. said Tuesday it reversed a year-ago loss in its fiscal third quarter as homebuyers raced to close on purchases before the end of June to qualify for federal tax credits.
But with the credits new expired, new sale orders dipped 3 percent.
Chairman Donald R. Horton said in a statement that, as expected, "market conditions in the homebuilding industry have become more challenging after the expiration of the tax credit."
Concern has been building that the housing market's recovery could stall. Along with the expiring government incentives, unemployment remains high, economic growth has slowed and new foreclosures continue.
Still enjoying a boost from the tax credits, D.R. Horton booked net income of $50.5 million, or 16 cents a share, in the three months ended June 30. That compares with a loss of $143.8 million, or 45 cents a share, in the prior-year period.
Revenue jumped 51 percent to $1.38 billion, with the number of closed sales jumping 60 percent to 6,805 homes.
The results came in roughly as expected. Analysts surveyed by Thomson Reuters expected earnings of 16 cents per share and revenue of $1.34 billion.