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Lennar Tops Q2 Expectations

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Lennar Corporation (NYSE: LEN) reported stronger-than-expected results for its fiscal second quarter.

The Miami, Florida-based company reported quarterly net income of $183 million, or $0.79 per share, compared to $137.7 million, or $0.61 per share, in the year-ago period.

Its total revenue climbed 31.5 percent to $2.39 billion. However, analysts were expecting earnings of $0.64 per share on revenue of $2.02 billion.

The average estimate among 16 Estimize users was for earnings of $0.70 per share and revenue of $2.09 billion.

Its orders surged 17.6 percent to 7,271 homes in the quarter, while new orders dollar value climbed 28 percent to $2.6 billion.

Deliveries rose 21 percent to 6,015 homes.

Lennar Homebuilding operating earnings surged 25 percent to $292.8 million, versus $234.5 million. Lennar Financial Services operating earnings jumped to $39.1 million from $18.3 million, while Rialto operating earnings (net of noncontrolling interests) slipped to $7.6 million from $13.4 million. Lennar Multifamily operating loss came in at $8.7 million in the quarter, versus a year-ago loss of $7.2 million.

Stuart Miller, Chief Executive Officer of Lennar Corporation, said, "The homebuilding market continued its steady improvement throughout our second quarter. Driven by higher wages and employment, reasonable affordability levels, supply shortages and favorable monthly payment comparisons to rentals, the homebuilding market is well positioned for multi-year growth ahead."

Lennar shares gained 1.43 percent to $49.70 in pre-market trading.

 

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