Homebuilder Lennar tops profit expectations in third quarter, reports higher-than-expected deliveries

Lennar Corp (NYSE:LEN) topped analyst estimates in its fiscal third-quarter earnings, beating on profit as a result of higher-than-expected home deliveries.

The homebuilder reported earnings of $1.37 per share on revenue of $5.67 billion compared with $1.04 EPS on revenue of $3.26 billion in the previous year’s third quarter.

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The Miami-based company surpassed Wall Street estimates of $1.18 EPS on revenue of $5.61 billion.

Shares of Lennar jumped about 5% but then fell slightly in Wednesday pre-market trading before stelling down to $46.91 in the regular session.

“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 in the company’s press release.

Deliveries soared 66% to 12,613 homes, ahead of consensus estimates of 12,567.

The average sale price of homes delivered was up 10% to $415,000, above estimates of $410,230.

Its financial services division earnings jumped to $56.6 million compared with $49.1 million a year ago.

Miller forecast strong performance in the coming fiscal year, citing the company’s solid balance sheet and strong cash flow.

Lennar is one of the largest homebuilders in the US, constructing primarily single-family attached and detached homes.

Story by ProactiveInvestors