Lennar (LEN) Stock up 6 Percent on Housing Demand
Shares of Lennar Corporation (LEN) were up +2.23 or +6.34 percent to close at $37.43 per share on Wednesday, after the company reported a 13 percent increase in new sales for the quarter ended on November 30th. The company also reported a 32 percent increase in net income for the quarter. In addition to the favorable earnings release, Lennar stock reacted to data from the U.S. Commerce Department, which showed November U.S. Housing Starts had risen to their highest level in six years.
The news indicated that the U.S. housing market is on track to recover despite a recent spike in mortgage rates.
Miami, Florida based Lennar Corporation is the nationâ s largest homebuilder, with a market value of $6.7 billion. The company operates primarily in 17 states that include Arizona, California, Colorado, Delaware, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia. Fourth quarter net earnings came to $164.1 million, or $0.73 per diluted share, versus $124.3 million or $0.56 per diluted share in 2012, analysts expected $0.62 per share; revenue from home sales increased +50 percent to $1.7 billion from $1.2 billion in the same period one year ago. The increase was primarily due to a +18 percent increase in the average sale price and a +27 percent rise in home deliveries. Gross margins on sales were $465.0 million, versus $270.3 million in 2012, an increase of +23.5 percent. In the companyâ s press release, Chief Executive Officer, Stuart Miller stated â
Published on Dec 19, 2013
By Jay Hawk