D.R. Horton, the largest U.S. homebuilder, said Tuesday that its fiscal first-quarter net income jumped 86 percent as selling prices for its houses rose 10 percent to $275,600. Its shares climbed in morning trading.
The company said it saw "pricing power across most of our markets and increased demand from move-up buyers." It said housing market conditions are improving across most of its markets, and the pace of sales increased this month.
The Fort Worth, Texas-based company earned $123.2 million, or 36 cents per share, for the quarter that ended Dec. 31. That was up from $66.2 million, or 20 cents per share, during the same period a year earlier. Revenue rose almost 33 percent to $1.64 billion, from $1.23 billion a year earlier.
Analysts surveyed by FactSet had been expecting a profit of 31 cents per share on revenue of $1.49 billion.
The company said it believes it is "well-positioned to capture demand" in the spring with a strong inventory of homes ready to sell.
Its shares rose $1.33, or 6.4 percent, to $22.27 in morning trading. Its shares are up 14 percent over the past three months.