Lennar (NYSE:LEN) saw its shares soar after surmounting analyst expectations on its third-quarter numbers.
The company, based in Miami, and enjoying a status as one of the United States’ leading home builders, reported third-quarter earnings of $1.59 per share, which beat the analyst consensus estimate of $1.32 by 20.45%. This is a 1.2% decrease over earnings of $1.61 per share from the same period last year.
The company reported quarterly sales of $5.857 billion, which beat the analyst consensus estimate of $5.49 billion by 6.68%. This is a 3.24% increase over sales of $5.673 billion the same period last year.
LEN also reported new orders of 13,369 homes – up 9%; new orders dollar value of $5.2 billion – up 3%. There is also a backlog of 18,908 homes – down 2%; backlog dollar value of $7.6 billion – down 9%
Said Chairman Stuart Miller, "As the market continued to solidify through the third-quarter, stimulating both the affordability and demand for homes, our new orders and deliveries increased 9% and 7%, respectively, from the prior year."
Our home building gross margin in the third quarter was 20.4%, while our SG&A of 8.3% marked an all-time, third-quarter low. We continue to believe that the basic underlying housing market fundamentals of low unemployment, higher wages and low inventory levels remain favorable."
Lennar shares traded higher by $1.61, or 2.9%, at $57.33 early in Wednesday's session, hitting a new 52-week high.
