Lennar's stock set for rally after profit and sales beat expectations
Shares of Lennar Corp. (LEN) were indicated up nearly 3% in premarket trade Tuesday, after the home builder reported fiscal third-quarter profit and sales that beat expectations. Net income for the quarter to Aug. 31 rose to $232.7 million, or $1.06 a share, from $231.8 million, or $1.01 a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.00. Revenue rose to $3.26 billion from $2.83 billion, just above the FactSet consensus of $3.24 billion, with home sales increasing 17%, amid 12% growth in home deliveries. Sales incentives per home delivery were 5.5%, the lowest percentage since 2006, the company said. The results come after the company reported on Sept. 14 deliveries and new orders that were below expectations, citing effects of Hurricanes Harvey and Irma. The stock had edged up 0.5% over the past three months, while the SPDR S&P Homebuilders ETF (XHB) had gained 3.9% and the S&P 500 had advanced 4.1%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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