(Reuters) – D.R. Horton Inc on Thursday raised its forecast for full-year revenue and homes closed, benefiting from strong demand and easing shortages of labor and construction supplies, sending its shares up 6% premarket.
U.S. homebuilders are getting a boost from low existing homes inventory and pent-up demand. Meanwhile, house prices have resumed their upward trend on a monthly basis as the existing homes inventory remains well below pre-pandemic levels.
“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,” Chairman Donald Horton said in a statement.
The Arlington-based homebuilder forecast 2023 revenue between $34.7 billion and $35.1 billion, up from its prior guidance of between $31.5 billion and $33.0 billion.
It also raised its forecast for homes closed, which means the final step of the homebuying transaction, to between 82,800 and 83,300 homes from 77,000 and 80,000 it had forecast earlier.
Revenue rose 10.7% to $9.73 billion in the third quarter, beating expectations of $8.39 billion, as per Refinitiv data.
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Net income attributable to the company fell to $1.35 billion, or $3.90 per share, but beat expectations of $2.79.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Sriraj Kalluvila)