Lennar's Stock Set For Sharp Gains After Profit And Sales Reported Well Above Expectations

Shares of Lennar Corp. were indicated up nearly 4% in premarket trade Tuesday, after the home builder reported fiscal second-quarter results that were well above expectations. Net profit for the quarter to May 31 came to $213.6 million, or 91 cents a share, from $218.5 million, or 95 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 79 cents. Revenue rose to $3.26 billion from $2.75 billion, beating the FactSet consensus of $2.81 billion, as all revenue segments, such as home and land sales, financial, Rialto and multifamily all beat analyst projections. Deliveries rose 15% to 7,710 homes, beating the FactSet consensus of 7,025 homes, while new orders of 8,898 homes exceeded expectations of 8,739. The value of new orders jumped 17% to $3.4 billion, above the FactSet consensus of $3.3 billion. Lennar's stock has soared 23% year to date through Monday, while the SPDR S&P Homebuilders ETF has climbed 15% and the S&P 500 has gained 9.6%.