US housebuilder D.R. Horton Inc. (NYSE:DHI) posted quarterly earnings and revenue that beat analysts’ estimates as housing demand remained strong despite rising interest rates.
Net income attributable to the company dropped to US$189.3mln, or 49 US cents per share, in the first quarter to December 31, from US$206.9mln, or 55 US cents per share, a year earlier.
READ: D.R. Horton Inc shares dip premarket after slashing 2017 cashflow forecast by half
Excluding a one-time charge, the company earned 77 US cents per share, exceeding market forecasts of 49 US cents.
Revenue increased 14.8% to US$3.33bn, ahead of analysts’ expectations of US$3.26bn.
D.R. Horton sold 10,788 homes in the quarter, compared to 9,404 a year earlier.
The company said it expects to sell between 50,500 and 52,500 homes in fiscal year 2018 and reiterated its revenue forecast to be between US$15.5bn and US$16.3bn.
The group has been supported by a healthy US housing market with job growth driving demand.
Interest rate hikes by the Federal Reserve, changes to US tax laws related to mortgage debts and high construction costs keeping prices up have not seemed to deter buyers.
Shares rose 4.5% to US$50.75 each in US pre-market trade.