D.R. Horton missed both revenue and earnings expectations for fiscal fourth quarter, amidst a rising interest rate environment apparently dampening demand for homes.
The biggest home building company in the U.S. earned $4.67 a share in the quarter, compared to $5.07 a share expected by analysts.
Revenue rose just under +19% from the year-ago quarter to $9.64 billion, but fell short of the Street expectations of $9.87 billion. Homebuilding revenue came in at $9.4 billion, increasing from $7.6 billion in the year-ago quarter.
The company experienced a rise in cancellation rate to 32%, from 24% in Q3 and from 19% in the year-ago quarter. Net orders dropped to 13,582 homes (value of $5.4 billion), from 16,693 homes ($6.9 billion value) in Q3 and from 15,949 homes ( $6.0 billion value) in Q4 2021.