Lennar beats profit expectations, but revenue and deliveries come up short
Lennar Corp. reported Wednesday a fiscal fourth-quarter profit that beat expectations, but revenue, deliveries and new orders that came up a bit short. The homebuilder's stock was still inactive in premarket trade. Net earnings for the quarter to Nov. 30 rose to $796.1 million, or $2.42 a share, from $309.6 million, or $1.29 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.96. The FactSet EPS consensus was $1.93. Total revenue increased 71% to $6.46 billion, but was just below the FactSet consensus of $6.48 billion. Home deliveries rose 64% to 14,154, below the FactSet consensus of 14,482, while the average price of homes delivered grew 8.8% to $421,000, but missed expectations of $419,680. New orders increased 44% to 10,611 homes, below the FactSet consensus of 11,213, while the average price of new orders increased 3.1% to $421,000, topping expectations of $412,020. "We continue to believe that the housing market is adjusting to a temporary disconnect between sales prices and buyer expectations and that the basic underlying fundamentals of low unemployment, higher wages and low inventory levels remain favorable," said Executive Chairman Stuart Miller. The stock has lost 3.2% over the past three months, while the SPDR S&P Homebuilders ETF has declined 4.2% and the S&P 500 has shed 10.6%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.