Homebuilder Lennar (LEN) - Get Report on Tuesday posted fiscal second-quarter earnings that handily exceeded analysts' forecasts amid a revival in demand for new homes - a reflection of a healthy U.S. economy and still-favorable consumer borrowing costs.
The Miami-based company reported net income of $421.5 million, or $1.30 a share, vs. $310.3 million, or 94 cents a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of $1.15 a share.
Revenue inched up 2% to $5.2 billion from $5.1 billion a year ago. The company handed over the keys to some 12,729 completed homes - an increase of 5%, while orders for new homes gained 1% to 14,518, which translates into a dollar value of $5.8 billion.
"Our second-quarter results benefited from both first-quarter deliveries postponed by weather as well as a recovering housing market," Lennar Executive Chairman Stuart Miller said in a statement, noting last year's housing market dip "set the stage for more moderate home price increases and lower interest rates, which stimulated both affordability and demand, leading homebuyers back to the market."
Morningstar earlier this month named Lenmar one of its top four undervalued housing-related picks, noting the company "is well positioned to benefit from increased demand from first-time buyers and its emerging multifamily business, and has the widest margin of safety among our homebuilder coverage."
Shares of Lennar rose 0.83% on Tuesday to $51.84 on the New York Stock Exchange.