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FILE PHOTO: Signage is seen at Medford Walk by D. R. Horton, a home construction company, in Medford, New Jersey, U.S., May 23, 2022. REUTERS/Andrew Kelly
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(Reuters) -U.S. homebuilder D.R. Horton Inc on Thursday forecast full-year revenue above estimates after reporting better-than-expected quarterly results, helped by elevated property prices amid tight supply.
Shares of America’s largest homebuilder rose 3.6% to $105.5 in premarket trade.
“Despite higher mortgage rates and inflationary pressures, demand improved during the quarter due to normal seasonal factors,” D.R. Horton Chairman Donald Horton said.
Mortgage rates, which in February had resumed their upward trend, started declining in tandem with U.S. Treasury yields after the turmoil in the banking sector last month, pulling some buyers back into the market.
The Arlington-based homebuilder forecast 2023 revenue between $31.5 billion and $33.0 billion, above analysts’ estimates of $28.5 billion, according to Refinitiv.
“Although higher interest rates and economic uncertainty may persist for some time, the supply of both new and existing homes at affordable price points remains limited, and demographics supporting housing demand remain favorable,” Horton added.
D.R. Horton posted revenue of $7.97 billion, compared with analysts’ average estimate of $6.47 billion.
It reported net income of $2.73 per diluted share compared with estimates of $1.93 a share.
