Lennar (NYSE:LEN) traded higher Monday after reporting third-quarter earnings that widely beat expectations, as home sales prevailed despite the expiration of the homebuyer tax credit.
The homebuilder posted net earnings of $30 million, or 16 cents a share, up from a loss of $171.6 million, or 97 cents a share, in the same quarter last year.
Revenue for the Miami company was $825 million, up 14% from $720.7 million a year ago.
The results significantly trumped average analyst estimates of 4 cents a share for earnings and $765.19 million for revenue, according to a Thomson Reuters poll.
Lennar CEO Stuart Miller said the company expected third-quarter revenues to decline due to the expiration of the Federal homebuyer tax credit at the end of April, but he said the company still posted strong results, attributable to its focus on fundamentals.
“Although high unemployment and foreclosures have continued to present challenges for the national housing market, our communities have been less impacted than the broader market,” he said.
Earnings were boosted by a 10% increase in home sales.
Miller said he was optimistic that the company is well positioned to achieve “sustainable profitability” as the housing market recovers.