Miami-based Lennar Corp., a homebuilding giant, reported second-quarter earnings well above Wall Street’s expectations, saying the nation’s battered housing market has “commenced a slow and steady recovery process.”
“I’m increasingly optimistic we’re seeing a real bottom in housing,” Stuart Miller, chief executive officer of Lennar, told analysts in a conference call Wednesday.
“While the downturn was national, the recovery is decidedly very local,” with pockets in the most desirable locations stabilizing and recovering first, while other areas languish, Miller added.
Lennar posted net income of $452.7 million, or $2.06 a diluted share, including a large tax-related gain, for the period ended May 31. That compared with year-ago earnings of $13.8 million, or 7 cents a diluted share. Excluding the tax-related gain, Lennar reported net income of 21 cents a share, beating analysts’ consensus estimate of 17 cents a share.
It was Lennar’s ninth consecutive quarter of profitability.
Second-quarter revenue rose 22 percent to $930.2 million from $764.5 million a year earlier.
Lennar said deliveries of new homes increased 20 percent in the latest quarter, while new orders increased 40 percent. Its operating margin widened to 9.2 percent, the best since the second-quarter of 2006.
Source: The Miami Herald Distributed by McClatchy-Tribune News Service.
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