Lennar (LEN 54.36, +1.54) has spiked 2.9% after beating earnings expectations for the third quarter.
The major homebuilder reported above-consensus third quarter earnings of $1.06 per share on a 15.1% year-over-year increase in revenue to $3.26 billion, which was just ahead of market expectations.
Lennar's home deliveries grew 12.0% to 7,598 homes while new orders rose 8.0% to 7,610 homes. The company's new orders have a total value of $2.90 billion, representing year-over-year growth of 14.0%.
On a regional basis, deliveries in the East spiked 20.8% to 3,778 units while deliveries in the West rose 16.4% to 1,656 units. Other deliveries grew 4.1% to 434 units while Central deliveries declined 4.5% to 1,730 units.
Looking at the new orders picture, orders in the East rose 13.8% to 3,841 units and orders in the West grew 12.8% to 1,689 units while Central orders declined 3.3% to 1,657 units and other orders declined 1.9% to 423 units.
Sales incentives per home delivery were at an 11-year low of 5.5%.
The company noted that the integration of WCI, which was acquired in February 2017, was seamless, helping the company improve its debt-capital ratio to 39.6% from 39.9% one year ago.
Lennar has operations in Florida and Texas, but the company reported minimal damage to its communities. The company estimates that 950 closings will be delayed from 2017 to 2018 due to the recent storms.
Backlog increased 10.0% to 10,212 homes while the dollar value of the backlog grew 18.0% to $4.10 billion.