Miami-based homebuilder Lennar Corp (LEN) said on Tuesday that its third-quarter profit topped analysts estimates on flat revenue and it reiterated that Hurrican Harvey damage would delay some closing but also generate new business as Florida rebuilds following the storm.
The company said it earned of $249.2 million, or $1.06 per share, compared to $235.8 million, or $1.01 per share a year ago. Revenue rose 15% to $3.30 billion. Analysts polled by FactSet Research expected the company to earn $1 a share on $3.2 billion revenue.
Lennar said it delivered 7,598 homes in the quarter, up 12%. And, it reported 7,610 orders for homes, an 8% year over year rise.
"These results were supported by strong demand for homes, low unemployment, favorable interest rates and increased consumer confidence which are all signs of a very healthy homebuilding market," Lennar's Chief Executive Officer Stuart Miller said in a press release.
The company also updated its outlook following Hurricane Harvey's destructive tear through the southeast last month.
"After having time to complete a more detailed assessment, we can confirm that the overall damage to our communities was minimal. Additionally, given the disruption from the preparation for the storms, clean-up after the storms, and restart and normalization of business operations, we maintain our estimate that approximately 950 closings will be pushed from 2017 into 2018," Miller said.
He added that once past storm's short-term impact there would be, "increased economic activity and an increased demand for new homes which will result in a broader range of opportunities for us as we look towards 2018."
Lennar shares raced higher Tuesday, coming within pennies of its 52-week high, after the Miami-based homebuilder beat on earnings per share and revenue estimates for the fiscal third quarter.
Lennar grew its gross margins year-over-year as well, TheStreet's Jim Cramer pointed out on CNBC's "Mad Dash" segment Tuesday morning. "Housing is so strong," he added, noting that even Sherwin Williams (SHW) has had strong data.