Dive Brief:
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Miami-based Lennar reported Thursday more home sales and higher prices than Wall Street analysts had predicted for the fiscal third quarter. Lennar is the second-biggest U.S. homebuilder by stock-market value, and the third-biggest by revenue.
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The company netted $177.8 million between June and August, up from $120.7 million in August 2013. The better-than-expected showing pumped prices of Lennar stock to 78 cents a share, considerably higher than analysts’ estimates of 67 cents.
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Lennar, which builds homes for first-time and move-up buyers, boosted earnings by raising its home prices and leveraging its size to coax better deals on building products and land.
Dive Insight:
Lennar’s performance has outpaced some of its competitors: Big builders Toll Brothers and Hovnanian Enterprises, for example, reported fewer orders for new homes in August than during the same month last year. Still, coupled with a Thursday report from the National Association of Home Builders showing a spike in home builder confidence, Lennar’s positive numbers could bode well for the near future of housing stocks and the housing market.