“D.R. Horton Inc. (DHI), the largest U.S. homebuilder by volume, said fiscal first-quarter profit more than doubled as demand for new houses climbed in a recovering real estate market.
Net income was $66.3 million, or 20 cents a share, for the three months ended Dec. 31, up from $27.7 million, or 9 cents, a year earlier, the Fort Worth, Texas-based company said in a statement today. The average estimate of 19 analysts in a Bloomberg survey was for earnings of 14 cents a share.
Low mortgage rates and a shrinking inventory of existing residences on the market are fueling sales of new houses. U.S. builders sold 367,000 homes in 2012, the most in three years, the Commerce Department said last week. Under Chief Executive Officer Donald J. Tomnitz, D.R. Horton has focused on using its size advantage to control costs and increase market share by accelerating land purchases ahead of smaller competitors.
“We experienced broad improvement in demand in most of our markets this quarter, and we significantly increased our investments in homes under construction, finished lots, land and land development to capture this increasing demand,” Chairman Donald R. Horton said in the statement.
