Lennar Posts Double Digit Gains in New Orders, Backlog

Home builder Lennar Corp. posted another quarter of double-digit percentage gains in key metrics as the recovery in the U.S. home market continues.

The company's earnings and revenue also beat analysts' marks.

On Monday, Chief Executive Stuart Miller said the "home-building market continued its slow and steady recovery sustained by low interest rates, modest wage growth, positive consumer confidence and low unemployment levels combined with tight inventory levels."

Miami-based Lennar, one of the largest U.S. home builders by houses constructed, said revenue rose as both the number and average price of delivered homes increased. The number of deliveries rose 12% for the second quarter from a year before as the average price of a delivered home increased 4.0% to $364,000.

The number of new orders increased 9.5% and backlogs increased 12%.

The company's results were hurt by its Houston segment whose large energy sector has been challenged by low energy prices in recent quarters.

Lennar reported a profit for the three months ended May 31 of $218.5 million, or 95 cents a share, up from $183.1 million, or 79 cents a share, a year prior. Revenue grew 15% to $2.75 billion.

Analysts polled by Thomson Reuters projected 86 cents in per-share profit on $2.53 billion in revenue.

Shares in the company, down 1.3% in the past three months, rose 0.7% in premarket trading.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

June 21, 2016 07:15 ET (11:15 GMT)

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