D.R. Horton Inc. (DHI), the largest U.S. homebuilder by revenue, fell the most in almost five years after saying its increasing incentives to boost orders, reducing profitability as the broader new-home market stumbles.

Net income for the three months through June 30 fell to $113.1 million, or 32 cents a share, from $146 million, or 42 cents, a year earlier, the Fort Worth, Texas-based company said today in a statement. The average estimate of 10 analysts was 49 cents a share, according to data compiled by Bloomberg.

D.R. Horton “is changing its operating strategy to target a certain pace of unit sales per community,” Jay McCanless, an analyst with Sterne Agee & Leach Inc., said in a note to investors. “We see the downsides of this strategy as a higher likelihood of impairments, increased use of incentives and less predictability in quarterly results.”