Why D.R. Horton’s stock went soaring
An 86% climb in earnings will do that
The HW 30 finished Tuesday in much better territory than it was last week, climbing at least 11.44 points, or 1.07%, before concluding the trading day.
So what accounted for this surge in stock confidence? A sudden burst in consumer confidence apparently. Data released Tuesday showed consumer confidence climbing to a five-month high in January, according to Bloomberg.
Apparently, D.R. Horton (DHI), homebuilder to the middle market, benefited from some sort of rise in consumer confidence. Not only did the company's stock finish the trading day way up, earnings for the first-fiscal quarter climbed 86% from last year.
The builder posted first-fiscal quarter earnings of $123.2 million, or 36 cents a share, up from $66.3 million, or 20 cents a share, during the same quarter last year.
Homebuilding revenue also shot up 33% to $1.6 billion, from $1.2 billion in the same quarter. And the number of homes closed in the quarter grew 19% from 5,182 last year to 6,188 in the most recent quarter.
Net sales for the quarter also increased 4% from the year ago quarter, hitting 5,454 homes.
All of this good news led to a pleasant trading day for D.R. Horton (DHI), which finished up 2.06 pts or 9.84%.