Lennar soars as job gains fuel new-home sales

Bloomberg

Lennar Corp., the second-largest U.S. homebuilder, reported a higher-than-forecast profit for its fiscal first quarter as U.S. job gains bolstered demand for real estate purchases.
Net income for the three months through February was $144.1 million, or 63 cents a share, compared with $115 million, or 50 cents, a year earlier, the Miami-based company said in a statement.
Lennar has been able to operate with relatively large profit margins because it loaded up on land at distressed prices after the real estate crash. The company is now selling homes into a rebounding property market fueled by job growth.
Purchases of new homes nationwide climbed in February for the fourth time in the past five months. Sales rose 2 percent to a 512,000 annualized pace following a 502,000 rate in January that was stronger than previously reported, Commerce Department data showed last week.
Lennar delivered 4,832 homes in the quarter, up 12 percent from a year earlier. The average selling price climbed 12 percent to $365,000. New orders rose 10 percent to 5,794.
Earnings were announced before the start of regular U.S. trading. Lennar shares climbed 0.8 percent on Tuesday to $46.70.
Lennar Corp., the second-largest U.S. homebuilder, reported a higher-than-forecast profit for its fiscal first quarter as U.S. job gains bolstered demand for real estate purchases. Net income for the three months through February was $144.1 million, or 63 cents a share, compared with $115 million, or 50 cents, a year earlier, the Miami-based company said in a statement on Tuesday. The average estimate of 14 analysts was for earnings of 52 cents a share, data compiled by Bloomberg show.
Lennar has been able to operate with relatively large profit margins because it loaded up on land at distressed prices after the real estate crash. The company is now selling homes into a rebounding property market fueled by job growth.