Lennar Rides Housing Boom With Home Orders Beating Estimates
(Bloomberg) -- U.S. homebuilder Lennar Corp. reported quarterly orders that beat estimates as it benefits from the pandemic-driven housing boom.
- Purchase contracts for the three months through November rose 16% from a year earlier to 15,214, the Miami-based company said in a statement Wednesday. Analysts were expecting 14,320, according to a Bloomberg survey. The company’s profit also topped expectations. Its shares gained as much as 3.9% in late trading.
- Lennar is riding an unusual housing boom, built on the lowest mortgage rates in history and buyers rushing to the suburbs in search of bigger suburban homes with space for offices and home-schooling.
- Order growth fell short of some competitors, partly because Lennar says it has intentionally limited sales even as demand surges.
- The building season hasn’t let up even as winter arrives, typically among the slowest times of the year. But fewer people are traveling and have more time to shop. U.S. homebuilder confidence eased slightly in December from the prior month’s record high.
- Lennar’s shares had jumped 33% this year through Wednesday’s close, compared with a 24% increase for an S&P index of homebuilder stocks.
- Click here to read the earnings statement. The company will hold a conference call Thursday at 11 a.m. New York time.
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