Shares of D.R. Horton (NYSE: DHI) fell 9.2% on Tuesday after the nation’s largest homebuilder announced mixed quarterly results compared to expectations.

Revenue rose 6.5% year-over-year to $7.73 billion in the first fiscal quarter of 2024, ending Dec. 31, 2023, on net income of $947.4 million, or $2.82 per share. Analysts on average had forecast slightly higher earnings of $2.88 per share on lower revenue of $7.59 billion.

Digging deeper into the results of D.R. Horton, the number of homes closed during the quarter rose 12% to 19,340, but the value increased only 8% to $7.3 billion due to lower home prices. The company also repurchased 3.3 million shares during the quarter for just over $398 million.

Chairman Donald R. Horton said that while inflation and mortgage rates remain elevated, net sales orders rose 35% year-over-year due to a combination of favorable housing demand and a limited supply of both new and existing homes at affordable prices.

Looking ahead to the remainder of the fiscal year, D.R. Horton now expects full-year revenue to be between $36 billion and $37.3 billion ($300 million more than previously), assuming the company’s homebuilders close between 87,000 and 90,000 homes (up from 86,000-89,000 previously). D.R. Horton reiterated its forecast for cash flow from its homebuilding operations of $3 billion and share repurchases of $1.5 billion this fiscal year.

All in all, it was indeed a fairly strong quarter from D.R. Horton. But with the stock up nearly 50% over the past year, it’s no surprise that it’s pulling back today as investors digest the additional headwinds to the company’s earnings growth.