Lennar’s stock jumps after profit, deliveries rise above expectations
Shares of Lennar Corp. LEN, -0.83% shot up 5.3% in premarket trade Wednesday, after the home builder reported a fiscal third-quarter profit that rose above expectations. Net earnings for the quarter to Aug. 31 rose to $453.2 million, or $1.37 a share, from $249.2 million, or $1.04 a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.18. Total revenue increased to $5.67 billion from $3.26 billion, above the FactSet consensus of $5.61. Deliveries climbed 66% to 12,613 homes, topping the FactSet consensus of 12,567, as the average sales price of homes delivered increased 10% to $415,000, which was above expectations of $410,230. "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," said Executive Chairman Stuart Miller. The stock, which closed at a 1 1/2-year low on Friday, has slumped 10.7% over the past three months through Friday, while the iShares U.S. Home Construction ETF ITB, -0.06% has lost 8.1% and the S&P 500 SPX, -0.04% has gained 7.8%.
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