Lennar Profit Goes Through the Roof

The homebuilder reports record fourth-quarter earnings and ups guidance.

Author:: TSC Staff
Publish date:: Dec 15, 2004 8:21 AM EST

The house party continues.

This time it is

Lennnar Corp.

(LEN) - Get Report

The Miami-based homebuilder Wednesday joined

Toll Brothers

(TOL) - Get Report

in reporting record earnings for the most recent quarter and also raised 2005 guidance, the latest sign that the housing sector's much-anticipated slowdown has been overdone.

Lennar posted fourth-quarter net income of $379.7 million, or $2.29 a share, compared with $283.2 million, or $1.69 a share, a year ago. Revenue rose 21% to $3.6 billion. The consensus forecast was for earnings of $2.21 a share, according to Thomson First Call.

"Demand for new homes has remained strong," the company said in a statement, adding it remains "well-positioned for future success."

Growth in the quarter ended Nov. 30 was strong in all of the company's three business regions, even though a series of hurricanes hurt business in the southeast.

The company also raised its 2005 EPS forecast to $6.90 a share from $6.60 a share. Analysts expect $6.29.

Shares rose $2.59, or 5.1%, to $53.19 in premarket trading.