Lennar beats fourth-quarter estimates as market continues to grow

Homebuilder Lennar beat fourth-quarter expectations as the housing market continued to slowly recover, a Reuters article by Arunima Banerjee stated.

The article reported that the builder’s net income attributable to shareholders rose to $313.5 million, or $1.34 per share, in the quarter from $281.6 million, or $1.21 per share, a year earlier. In addition, its revenue rose 14.6% to $3.38 billion.

From the article:

“With the anticipation of a new President focusing on accelerating economic growth, we believe that our fortified balance sheet, our diversified business model and our refined product offerings, will continue to hold us in good stead in a high-growth economy, despite the potential of moderately rising interest rates over the next several years,” Chief Executive Stuart Miller said in a statement on Monday.

The Florida-based builder, which mainly caters to buyers looking for a second home, sold 8,228 homes during the quarter, compared with 7,657 last year. The average sales price increased 2.6 percent to $358,000.

Right before the election, the National Association of Home Builders/Wells Fargo Housing Market Index reported that builder confidence held steady in November,  in line with expectations.

“Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector,” NAHB Chief Economist Robert Dietz said at the time. “This will help keep housing on a steady, upward glide path in the months ahead.”

Source link

Reply