Investing.com -- Shares of D.R. Horton Inc rose about 1.5% in pre-market trading on Tuesday after the homebuilder posted third-quarter earnings that beat analyst estimates, though its full-year revenue outlook fell below the consensus forecast and net income fell 12% from a year earlier.

The company reported diluted earnings per share of $3.20 for the quarter ended June 30, beating the analyst consensus of $2.97 by $0.23.

Consolidated revenue of $9.23 billion also topped the consensus of $9.14 billion. No forecast range was provided in the consensus source.

Net income attributable to D.R. Horton fell 12% to $904.9 million, and diluted earnings per share declined 5% to $3.20 against the prior-year quarter. Consolidated pre-tax income was $1.2 billion, resulting in a pre-tax margin of 13.3%.

Home sales revenues rose 1% to $8.7 billion and homes closed increased 4% to 23,983, which the company said was "at the high end of our guidance range."

Net sales orders of 23,084 homes with an order value of $8.4 billion were flat with the same quarter of fiscal 2025. The cancellation rate rose to 20% from 17% in the prior-year quarter.

Executive chairman David Auld said "affordability constraints and cautious consumer sentiment continue to impact new home demand" and the company expects "sales incentives to remain elevated during the fourth quarter, with incentive levels dependent on demand, mortgage rates and other market conditions."

For fiscal 2026, D.R. Horton updated its full-year revenue guidance to $32.5 billion to $33 billion, below the consensus estimate of $33.81 billion. The company also narrowed its homes-closed outlook to 83,800 to 84,300.

The company repurchased 4.2 million shares for $615.7 million during the quarter and paid cash dividends of $127.1 million, returning $742.8 million in total to shareholders.

Subsequent to quarter end, D.R. Horton declared a quarterly cash dividend of $0.45 per share, payable August 13, to stockholders of record August 6.

For the nine months ended June 30, net income fell 20% to $2.1 billion and diluted earnings per share fell 13% to $7.45 on revenues of $23.7 billion. Total liquidity at quarter end was $6.1 billion and the debt-to-total-capital ratio was 23.0%.