Home builder D.R. Horton, Inc. (DHI) on Friday posted a sharp uptick in fiscal third quarter earnings, but much of the profit increase was due to a tax benefit tied to the housing market crash.
The Fort Worth, TX-based company reported third quarter net income of $787.8 million, or $2.22 per share, compared with $28.7 million, or 9 cents per share, in the year-ago period. The latest quarterly results included a massive one-time $716.7 million tax gain.
Revenue rose 14% from last year to $1.1 billion.
On average, Wall Street analysts expected still-higher sales of $1.19 billion.
D.R. Horton shares rose 20 cents, or +1.1%, in premarket trading Friday.
The Bottom Line
Shares of D.R. Horton (DHI) have a .80% dividend yield, based on last night’s closing stock price of $18.80. The stock has technical support in the $14-$16 price area. If the shares can firm up, we see overhead resistance around the $20-$21 price levels.
D.R. Horton, Inc. (DHI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.