Lennar Corp. (NYSE: LEN)
Lennar shares jumped 4% to $48.67 in premarket trading on Wednesday after the company reported upbeat results for its fiscal third-quarter.
During the three months to August 31, the Florida-based homebuilder saw its profit and revenue rise nearly 82% and 74%, respectively.
The company attributed the solid performance to its acquisition of CalAtlantic earlier this year, as well as a surge in home sales. Lennar stock has dropped 26% year to date and 11% year over year.
The company reported a net income of $453.2 million, or $1.37 per share, compared with $249.2 million, or $1.04 per share, in the earlier-year period. After stripping out acquisition and merger related costs, earnings were $1.61 per share.
Revenue came in at $5.67 billion, up 74% from $3.26 billion, in the year-ago period. Analysts were expecting adjusted earnings of earnings $1.19 per share on revenue of $5.61 billion, according to figures compiled by Thompson Reuters.
During the quarter, deliveries jumped 66% to 12,613 homes year over year, surpassing expectations of 12,567. The average sales price grew 10.7 % to $415,000, above estimates of $410,230.
Lennar Corp. Executive Comments
Stuart Miller, Executive Chairman of Lennar, commented, “We are pleased to announce our results for the third quarter, where we achieved net earnings of $453.2 million, or $1.37 per diluted share. Our core homebuilding operations continued to leverage our size and scale in the leading markets and drive operational excellence.”
“While national economic data has pointed to higher prices and rising interest rates causing slower overall sales, the basic underlying fundamentals of the housing industry of low unemployment, higher wages and low inventory levels remain favorable and are likely to support longer-term strength in the housing market.”
Lennar Corp. Company Profile
Lennar Corporation, together with its subsidiaries, operates as a homebuilder primarily under the Lennar brand in the United States. The company operates through Homebuilding East, Homebuilding Central, Homebuilding West, Lennar Financial Services, Rialto, and Lennar Multifamily segments.
Its homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. The company primarily sells single-family attached and detached homes in communities targeted to first-time homebuyers, move-up homebuyers, active adult homebuyers, and luxury homebuyers.
The company also offers mortgage financing, title insurance, and closing services for home buyers and others, as well as real estate brokerage services. In addition, it is involved in raising, investing, and managing third party capital; and originating and selling into securitizations commercial mortgage loans, as well as investing in real estate related mortgage loans, properties, and related securities.
Further, the company sponsors and invests in private equity vehicles; and provides asset management and other services to the vehicles and other third parties. Additionally, it develops, constructs, and manages multifamily rental properties. Lennar Corporation was founded in 1954 and is based in Miami, Florida. – Yahoo Finance