U.S.â€™s third biggest homebuilder Lennar Corp. (NYSE: LEN) reported on Wednesday that new orders rose for a fifth consecutive quarter and the company was also able to command higher prices in a market which is recovering slowly but surely.
The Company said that demand for new homes improved during the quarter, boosting its both top line and bottom line growth.
Lennarâ€™s strong results herald a robust quarter for other homebuilders such as D.R. Horton Inc. (NYSE: DHI) and Pulte Group Inc. (NYSE: PHM).
Headquartered in Miami, Lennar reported that new orders jumped 40 percent to 4,481 homes.
For the quarter ended 31st May, Companyâ€™s net income rose to $452.7 million, or $2.06 per share, from $13.8 million, or 7 cents per share, a year earlier. Its revenue also climbed up 22 percent to $930.2 million.Â After excluding the valuation allowances, company earned 21 cents per share.
Margins also leaped 310 basis points to 22.5 percent for the quarter ended May 31. Meanwhile, the average sale price of a Lennar home jumped to $250,000 from $245,000 in the same period of last year.
Analysts surveyed by Thomson Reuters were estimating earnings of 17 cents per share on revenue of $885.7 million.
According to Companyâ€™s CEO, Stuart Miller, the company is witnessing improvements both in pricing and volumes in most markets in spite of stricter mortgage standards employed by lenders.
For the quarter, company delivered 20 percent more homes compared to the same quarter of last year, while its backlog increased 61 percent.
Following the earnings announcement, Lennar shares were trading up 5.2 percent at $28.81. Meanwhile, shares of KB Home (NYSE: KBH), which is due to report its results later this week, jumped 5 percent. KB Home had reported lackluster earnings in March.