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Lennar new orders, deliveries below expectations in wake of Hurricanes Harvey and Irma

Lennar Corp. reported fiscal third-quarter deliveries and new orders, in the wake of Hurricanes Harvey and Irma, that were below expectations. The home builder said the hurricanes affected markets that in total represent 40% of its annual revenue, as they impacted its communities in Texas, Florida, Georgia and South Carolina. Lennar said it had 7,610 new orders for the quarter to Aug. 31, below the FactSet consensus of 7,796, while deliveries of 7,598 units missed expectations of 7,766. Hurricane Harvey impacted about 120 new orders and deliveries during the quarter, and is expected to impact about 130 deliveries in the current quarter. The company said Hurricane Irma could delay about 700 deliveries from the fourth quarter into fiscal 2018. “We expect that the rebuilding effort will result in increased economic activity and an increased demand for new homes which will result in a broader spectrum of opportunity for us as we look towards 2018,” said Chief Executive Stuart Miller. The stock, which was inactive in premarket trade, had lost 5.0% over the past three months, while the SPDR S&P Homebuilders ETF has gained 0.2% and the S&P 500 has tacked on 2.5%.

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