Lennar (LEN 54.74, +2.00) has jumped 3.8% after reporting better than expected results for the second quarter.
The homebuilder reported above-consensus second quarter earnings of $0.91 per share on an 18.8% year-over-year spike in revenue to $3.26 billion, which also exceeded expectations.
Second quarter results from homebuilders serve as the last look before the industry enters its strongest seasonal stretch, and Lennar's quarter was strong all around.
Deliveries increased 15.0% year-over-year to 7,710 homes while new orders increased 12.0% year-over-year to 8,898 homes, which was the highest level in ten years. The dollar value of new orders increased 17.0% to $3.40 billion. Backlog also saw a notable increase, growing 20.0% to $4.00 billion.
Gross margin declined 21.5% from 23.1% one year ago, but improved 40 basis points on a sequential basis.
Lennar's Financial Services arm reported earnings of $43.70 million, which was consistent with results from last year even though refinance transactions declined due to higher interest rates. The decline in refinance transactions was offset by higher profit per transaction in the company's title operations.
The company made some changes to its credit facility, increasing its maximum borrowing allowance to $2.00 billion from $1.80 billion. Furthermore, the company extended the maturity on $1.40 billion of its credit facility to June 2022 from June 2020.
Today's advance has lifted shares of Lennar to levels not seen since August 2015. This leaves the stock within five points of its all-time high of $60.56, which was recorded in July 2005.