Lennar Corp., the second-largest U.S. homebuilder, reported fiscal third-quarter earnings that beat analysts' estimates as demand for new homes strengthens.
Net income for the three months through August was $223.3 million, or 96 cents a share, compared with $177.8 million, or 78 cents, a year earlier, the Miami-based company said in a statement Monday. The average estimate of 11 analysts was for earnings of 79 cents a share, data compiled by Bloomberg show.
"The new-home and rental markets continued to have significant pent-up demand, which positions us well for years to come," Chief Executive Officer Stuart Miller said in the statement. "While our homebuilding business continues to be the primary driver of our quarterly earnings, we are in an excellent position across our multiple platforms."
Sales of new homes have increased as the economy improves, low mortgage rates help make purchases affordable and
Lennar has diversified more than most builders, offering homes for entry-level and move-up buyers in 17 states while investing in apartments, master-planned communities, mortgage financing and commercial real estate. In July, Lennar said it formed a $1.1 billion joint venture to develop apartments in 25 U.S. markets.
New orders in the quarter rose 10% from a year earlier to 6,495 homes, Lennar said. The dollar value of those properties climbed 20% to $2.3 billion. The company delivered 6,318 homes, a 16% increase. The gross margin on home sales was 24.1%, compared with 25.2% for last year's third quarter.
Earnings were announced before the start of regular U.S. trading. Lennar shares fell 2.3% to $51.75 on Friday. They're up 15% this year, compared with a 6.1% increase for the 22-company Bloomberg index of homebuilders.
