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July 28, 2020, 8:05 a.m. EDT

D.R. Horton profit soars above expectations

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By Adriano Marchese

D.R. Horton Inc. on Tuesday day reported a 33% rise in third-quarter profit, beating analyst forecasts, but said that uncertainty remains due to the pandemic.

The home-building company earned a quarterly profit of $630.7 million, or $1.72 a share, compared with $474.8 million, or $1.26, for the same period last year. Meanwhile, analysts polled on FactSet forecast a profit of $1.30 a share.

Sales rose to $5.39 billion from $4.91 billion. Net sales orders increased 38% to 21,519 homes, and rose 35% in value to $6.3 billion, it said.

The company said that the increase demand it experienced in May has been largely driven by "increased buyer urgency" due to lower interest rates on mortgage loans, as well as the limited supply of homes at affordable prices points.

However, D.R. Horton cautioned that there still remains uncertainty around the effects of the pandemic on its operations and on the overall economy in the future.

"There is significant uncertainty regarding the extent to which and how long Covid-19 and its related effects will impact the U.S. economy and level of employment, capital markets, secondary mortgage markets, consumer confidence, demand for the company's homes and availability of mortgage loans to homebuyers," the company said.

The company also said that homes closed in the quarter rose 10% to 17,642 homes compared with 15,971 homes closed in the same quarter of the prior year.

Write to Adriano Marchese at adriano.marchese@wsj.com

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