D.R. Horton Reports Earnings Beat but Stock Falls Despite Rising 25% Over the Week

D.R. Horton, a major homebuilder, reported earnings that beat expectations but revealed weaker-than-expected quarterly orders. The company's stock fell despite the earnings beat, as the revenue outlook was trimmed. CEO David O'Reilly commented on the challenges of inflation and elevated mortgage interest rates, noting that the supply of affordable homes remains limited. For the fourth quarter, D.R. Horton expects consolidated revenues between $10 billion and $10.4 billion, with home closings ranging from 24,000 to 24,500. The company's gross margin for home sales in the fourth quarter is projected to be stable at around 24%. Despite these challenges, D.R. Horton's stock saw a significant increase, rising 11% and even up 25% over the week, driven by market sentiment and expectations of rate cuts. DHI: -1.6% PM.