D.R. Horton posts higher home sales in 4Q and full year, but shares dip in premarket trade

US house-builder D.R. Horton (NYSE:DHI) reported on Tuesday that fiscal fourth quarter and full year home sales increased, but revenue came in below market expectations and its shares slipped as a result.

The company said it sold 14,674 homes, compared with 13,165 homes in the same quarter a year ago. Home sales revenue for the period came in at $4.4 billion, about 9% higher than the $4 billion in the year-ago period but below consensus expectations that it would reach $4.69 billion. 

For the fiscal year ended September 30, 2018, homes closed increased 13% to 51,857 homes, compared to 45,751 homes in fiscal 2017. 

READ: D.R. Horton posts better-than-expected quarterly earnings on strong housing demand

Home sales revenue in fiscal 2018 increased 14% to $15.5 billion from $13.7 billion in fiscal 2017. The company’s sales order backlog of homes increased 8% to 13,371 homes and 8% in value to $4 billion, compared to 12,329 homes and $3.7 billion as of September 30, 2017.

Shares of D.R. Horton dipped around 1% to $40.25 in Tuesday’s premarket.

READ: Homebuilder Lennar tops profit expectations in third quarter, reports higher-than-expected deliveries

“Housing fundamentals remain favorable, inventory levels are low and we continue to see good demand in our markets, particularly at affordable price points,” said company chair Donald R. Horton.

“With almost 30,000 homes in inventory at the end of the year and an attractive lot position, we continue to expect strong performance over the next year and are well-positioned to grow our consolidated revenues at a double-digit pace,” he added.

The housing sector is a huge factor in the US economy, having been a prime trigger for the financial crisis in 2008.

D.R. Horton is the largest homebuilder by volume in the United States for 16 consecutive years. The company is based in Arlington, Texas.

Story by ProactiveInvestors