D.R. Horton Inc., the largest U.S. homebuilder, jumped the most in 18 months after reporting reporting fiscal fourth-quarter earnings that rose 44 percent as sales increased.
Net income climbed to $238.9 million, or 64 cents a share, for the three months ended Sept. 30, from $166.3 million, or 45 cents, a year earlier, the Fort Worth, Texas-based company said in a statement Tuesday. The average estimate of 17 analysts was 63 cents a share, according to data compiled by Bloomberg.
The company also increased its quarterly dividend by 28 percent to 8 cents a share. D.R. Horton climbed 8.3 percent to close at $31.15, the biggest increase since April 2014.
D.R. Horton has been targeting all levels of homebuyers, from entry-level shoppers to those seeking luxury properties, as tight inventories continue to drive up prices. The median price of a new U.S. home increased 13.5 percent in September from a year earlier to $296,900, the highest level in 2015, according to the Commerce Department.
“Results this quarter reflect D.R. Horton’s operating acumen as well as its greater focus on spec construction, which allows for more even production,” Susan Maklari, an analyst at UBS AG, said in a note to clients.
Homebuilding revenue climbed to $3.1 billion in the fourth quarter from $2.4 billion a year earlier, , D.R. Horton said. Closed sales jumped 23 percent to 10,576. Net orders rose 19 percent from a year earlier to 8,477 homes.