This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Homebuilder Winners and Losers: Lennar

MIAMI -- Shares of major U.S. homebuilders rose Thursday after Lennar's (LEN - Get Report) second-quarter earnings report showed a significant spike in sales of completed homes and new orders compared with the prior three-month period.

Lennar reported Thursday a 47% increase in sales of completed homes and a 63% jump in orders from the first quarter. Lennar also reported a 15% cancellation rate for the second quarter, considerably smaller than the 22% posted in the same quarter last year.

Revenue dropped to $891.9 million from $1.13 billion on a year-over-year basis, but the Miami-based builder still managed to beat Wall Street's $597.5 million revenue estimate.

All that news sent Lennar's shares up as much as 18% after closing at $7.82 per share on Wednesday. Lennar rose $1.37, or 17.5%, to $9.19 at the close Thursday.

Investors in other homebuilders appeared motivated by Lennar's results. KB Home (KBH - Get Report) rose $1.13 , or 8.3%, to $14.77, while Centex (CTX) gained 47 cents, or 5.8%, to $8.58. Pulte Homes (PHM - Get Report) was up 49 cents, or 5.8%, to $8.96, and Toll Brothers (TOL - Get Report) increased 85 cents, or 5.2%, to $17.09.

The positive news in Lennar's report seemed to overshadow the company's slightly larger loss from last year's second quarter. Lennar lost $125.2 million, or 76 cents a share, for the three months ended May 31. Lennar posted a loss of $120.9 million, or 76 cents a share, in the second quarter last year.

The quarterly loss included 38 cents per share for adjustments in the value of land and inventory, and a 27 cents-per-share charge related to tax asset values.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CTX $25.57 -0.35%
KBH $12.98 -1.22%
LEN $44.01 -0.97%
PHM $18.19 -0.60%
TOL $26.62 -1.26%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs