UPDATE: Lennar Posts Upbeat FQ3 Results, Shares Surge

Shares of Lennar

surged more than 4% in pre-market trading after the company reported better-than-expected fiscal third-quarter earnings. The Miami, Florida-based company posted quarterly earnings of $177.8 million, or $0.78 per share, compared to $120.7 million, or $0.54 per share, in the year-ago period. Its revenue climbed 26% to $2.01 billion. However, analysts were projecting earnings of $0.67 per share on revenue of $1.96 billion. Lennar's home-building segment revenue surged 25% to $1.83 billion in the quarter. Operating earnings for the financial services segment rose to $27.1 million from $23.5 million, while operating earnings for the Rialto Investments segment jumped to$12.4 million from $1.5 million. Operating earnings for the Lennar Multifamily segment came in at $8.5 million, versus a loss of $5.6 million. Deliveries increased 9% to 5,457 homes, while average sale price of homes delivered jumped 14% to $333,000. The average price of new orders rose 4.1% y/y to $330,000, while total new orders climbed 23% y/y to 5,889 homes. Gross margin on home sales rose 30 basis points to 25.2%. Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "We are extremely pleased with our third quarter results as we achieved solid profitability in each of our reporting segments. Our core homebuilding business continues to drive earnings, with strong sales, deliveries and margins.” Lennar shares gained 4.27% to $40.80 in pre-market trading.