D.R. Horton matches profit expectations, revenue comes up shy

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D.R. Horton Inc. reported Thursday fiscal fourth-quarter earnings that matched expectations, but revenue that came up shy, as rising prices and higher interest rates have led to some moderation in demand. The stock was still inactive in premarket trade. Net income rose to $466.1 million, or $1.22 a share, from $313.2 million, or 82 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.22. Revenue increased to $5.51 billion from $4.16 billion, below the FactSet consensus of $4.55 billion. Homes closed rose 11% to 14,674, matching the FactSet consensus, as the value of homes closed increased 9% to $4.4 billion. Net sales orders grew 11% to 11,509 homes and homes in inventory as of Sept. 30 rose 13% to 29,700 homes. "Sales prices for both new and existing homes have increased across most of our markets over the past several years, which coupled with rising interest rates has impacted affordability and resulted in some moderation of demand for homes, particularly at higher price points," said Chairman Donald Horton. "However, we continue to see good demand and a limited supply of homes at affordable prices across our markets, and economic fundamentals and financing availability remain solid." The stock has tumbled 20% year to date, while the SPDR S&P Homebuilders ETF has shed 26% and the S&P 500 has gained 5.3%.