Thursday
July 31, 2014

Home Builder Lennar Quadruples Earnings

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Home Builder Lennar Quadruples Earnings

A rise in new orders and finished new homes sent Lennar Corp.’s earnings rising more than four times higher in the third quarter. 

Lennar reported that it earned $87.1 million for the three months ending Aug. 31, which is up from $20.7 million a year prior. The Miami-based home builder also reported home deliveries up 28 percent and new orders increasing 44 percent. 

Lennar sells homes for entry-level and move-up buyers and retirees. 

Other home builders, such as KB Home, have also recently reported strong growth recently. KB Home, which is the fifth largest home builder, says that its revenue backlog rose 33 percent and is at its highest level since the peak of the financial crisis. 

"We are attracting first-time and first move-up home buyers who have higher incomes...leading to a higher average selling price," KB Home Chief Executive Jeffrey Mezger said in a recent conference call. "Based on our current backlog we project that the trends of higher average selling prices and larger homes will continue going forward.”

Source: “Homebuilder Quadruples Its Earnings,” The Associated Press (Sept. 24, 2012) and “KB Home Profit Shows Housing Recovery on Track; Stocks Up,” Reuters (Sept. 21, 2012)

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