D.R. Horton Inc., the largest U.S. homebuilder, jumped the most in nine months after reporting fiscal fourth-quarter earnings that rose 44% 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% to 8 cents a share. D.R. Horton climbed as much as 5.7% in New York trading, the most since Jan. 26, and were up 2.5% at $29.50 at 10:00 a.m. in New York.
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% 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% to 10,576. Net orders rose 19% from a year earlier to 8,477 homes.
