Lennar Corp. (NYSE:LEN), the third-largest U.S. homebuilder by revenue, spiked in premarket trades after posting a better-than-expected 32 percent climb in fiscal fourth quarter profit as it sold more homes and increased prices.
Shares of the Miami, Florida-based company rose 3.4 percent to $36.39 at 6:07 a.m. in Toronto. The stock rose in the previous three sessions but is down 9 percent this year.
Net income rose to $164.1 million, or 73 cents a share, in the three months ended Nov. 30, from $124.3 million, or 56 cents a share, in the year-earlier period, Lennar said in a statement today.
Revenue climbed 42 percent to $1.92 billion.
Analysts tracked by FactSet expected earnings of 62 cents a share on revenue of $1.88 billion.
Deliveries of homes jumped 27 percent, while new orders rose to 4,498 homes. The average sale price increased 18 percent to $307,000.
"While the political and interest-rate environment and our previously initiated price increases tempered new-sales orders in the fourth quarter, we were still pleased with our overall performance," Chief Executive Stuart Miller said in the statement.
Gross margin increased 330 basis points to 26.8 percent.
Lennar has consistently reported double-digit revenue growth in the past several quarters amid a broad housing-market recovery. Buyers have been leaving the sidelines as interest rates remained low by historical standards, making homeownership more affordable than renting in many markets.
Earlier this month, fellow home builder Toll Brothers Inc. (NYSE:TOL) posted stronger adjusted income in its fiscal fourth quarter on increased home deliveries and revenue.