D.R. Horton Inc. (DHI) reported net income and revenue that surpassed Wall Street estimates, but the largest U.S. homebuilder's shares fell in afternoon trading.
The Fort Worth, Texas-based company said its net income, revenue, and the number of houses it completed improved in the fiscal second quarter. It also said the housing market is relatively stable and that the spring selling season is off to a strong start.
D.R. Horton said its profit grew 13 percent to $147.9 million, or 40 cents per share. Revenue rose 38 percent to $2.34 billion. The company said it completed 8,243 homes during the first quarter, up 33 percent from a year ago. Its average sales price edged up 2 percent and cancellations also increased slightly.
The company's fiscal second quarter ended on March 31.
D.R. Horton raised the lower end of its sales and home construction estimates, although it also expects slightly weaker profit margins on home sales. It is now forecasting $9.8 billion to $10.5 billion in revenue in the current fiscal year.
FactSet says analysts expect $10.29 billion on average.
Shares of D.R. Horton fell $1.63, or 5.7 percent, to $26.93 in afternoon trading. The stock is set an eight-year high of $29.29 earlier this month, and it has risen 32 percent over the last 12 months. Before this month, the stock hadn't traded above $29 since February 2007.
