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(Reuters) – D.R. Horton Inc, the No.1 U.S. homebuilder, reported a higher-than-expected quarterly profit as it sold more homes at higher prices, and it reported a 22 percent rise in orders.
Shares of D.R. Horton, which caters to people buying their first or second homes, rose 1.3 percent to $ 27.1 in premarket trading on Tuesday.
D.R. Horton’s orders rose to 10,398 homes in the third quarter ended June 30, from 8,551 a year earlier. The order growth was led by a 44 percent rise in the Southwest, the company’s smallest market by homebuilding revenue, and a 35 percent rise in the Southeast, its largest market.
The company’s average selling price rose 6.5 percent to $ 289,966, according to Reuters calculations.
Last week, peer PulteGroup Inc also reported a 7 percent rise in orders, while Lennar Corp reported an 18 percent rise in orders in June.
D.R. Horton’s net income nearly doubled to $ 221.4 million, or 60 cents per share, in the third quarter from a year earlier.
The company’s home sales revenue rose about 37 percent to $ 2.86 billion.
Analysts on average had expected a profit of 50 cents per share on revenue $ 2.70 billion, according to Thomson Reuters I/B/E/S.
Up to Monday’s close of $ 26.74 on the New York Exchange, the stock had risen about 6 percent this year, while the Dow Jones U.S. Home Construction index increased about 7 percent. (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)