NEW YORK (TheStreet) — D.R. Horton (DHI – Get Report) shares are jumping 2.54% to $29.50 in pre-market trading on Tuesday after the homebuilder earlier this morning released its fourth quarter 2015 earnings results that topped analysts’ estimates.
For the latest quarter ended September 30, the Forth Worth-based company earned 64 cents a share, beating estimates of 62 cents a share.
Revenue came in at $3.17 billion, exceeding projections of $3.04 billion.
In the same period the year before, the company earned 45 cents a share on revenue of $2.4 billion.
TheStreet‘s Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, commented on the merger saying: “I don’t like this group ahead of a rate hike in December, but this is a very strong order quarter. In the end though, this is not the place to be going into December.”
During the recent quarter, the company saw a 19% year-over-year increase in home net sales order to 8,477 and a 22% rise in value to $2.5 billion.
Additionally, homes closed in the quarter increased 23% to 10,576, compared to 8,612 homes in the year-ago quarter.
Along with the earnings release, D.R. Horton declared a quarterly cash dividend of $0.08 per common share, an increase of 28% compared to its most recent dividend paid. The dividend is payable on December 14, 2015 to stockholders of record on November 30, 2015.
Looking ahead, “We are focused on growing our revenues and pre-tax profits at a double-digit annual pace, while continuing to generate positive cash flows and improved returns,” Chairman of the Board Donald R. Horton stated.
Separately, TheStreet Ratings team rates D R HORTON INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate D R HORTON INC (DHI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company’s strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: DHI
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