D.R. Horton’s stock bounces after big earnings beat, upbeat outlook and raised dividend

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Shares of D.R. Horton Inc. bounced 2.9% in premarket trading Tuesday, after the home builder reported fiscal fourth-quarter profit and revenue that rose well above expectations, amid an 81% jump in net sales orders. Net income for the quarter to Sept. 30 increased to $829.0 million, or $2.24 a share, from $505.3 million, or $1.35 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.76. Revenue grew 27.0% to $6.40 billion, beating the FactSet consensus of $5.84 billion. Net sales orders increased 81% to 23,726 homes, above the FactSet consensus of 16,337 homes. The value of sales orders grew 84% to $7.3 billion, implying an average price per home of about $307,679, compared with expectations of $298,180. The company raised its quarterly dividend to 20 cents a share from 17.5 cents a share, with the new dividend payable Dec. 14 to shareholders of record on Dec. 4. For fiscal 2021, the company said it remains cautions given the ongoing effects of the COVID-19 pandemic, and the uncertainty regarding how long it will affect the economy. Still, the company expects revenue to be $24.0 billion to $25.0 billion, above the FactSet consensus of $23.3 billion. The stock, which has tumbled 13.1% amid a three-day losing streak through Monday, has rallied 23.1% year to date, while the SPDR S&P Homebuilders ETF has climbed 17.6% and the S&P 500 has gained 9.9%.
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