Lennar profit beats on higher home sales

Earnings

New homes for sale by Lennar home builders.

Getty Images

Lennar reported a better-than-expected profit on Wednesday, as cheaper mortgage rates led to higher demand for its homes.

The No. 2 U.S. homebuilder’s shares rose more than 2% before the opening bell.

The company said its orders, a key indicator of future revenue, rose 8.5% to 13,369 homes in the third quarter, beating its own expectation of a rise of 5.5% to 7.6%.

But Lennar’s orders in California, one of its biggest markets, have grown a relatively slower pace this year than the company’s total orders, as wealthy Chinese buyers have turned cautious, likely postponing their purchase decision amid a tit-for-tat Sino-U.S. trade war.

“The market continued to solidify through the third quarter, stimulating both the affordability and demand for homes,” Lennar Chairman Stuart Miller said in a statement.

Net income attributable to the company rose 13.3% to $513.4 million, or $1.59 per share, in the quarter ended Aug. 31.

Revenue rose 3.3% to $5.86 billion.

Analysts on average had expected Lennar to earn $1.32 per share on revenue of $5.48 billion.

Articles You May Like

IRS Urges Those Hoping To Help To Beware Of Scammers Using Fake Charities
Tax Attorney Recalls FBAR Case Journey From IRS Dispute To Supreme Court Decision
The Answer To Whether I’m Too Old To Get Another Dog
Top Wall Street analysts prefer these five stocks despite ongoing uncertainty
Lululemon shares jump as holiday-quarter sales surge

Leave a Reply

Your email address will not be published. Required fields are marked *