Shares of Lennar Corp. hiked up 4.8% in premarket trading Tuesday, after the home builder reported fiscal second-quarter profit and revenue that were well above expectations. Net income for the quarter to May 31 rose to $421.5 million, or $1.30 a share, from $310.3 million, or 94 cents a share, in the year-ago period. The FactSet consensus for earnings per share was $1.15. Total revenue grew to $5.56 billion from $5.46 billion, above the FactSet consensus of $5.03 billion, as homebuilding revenue rose to $5.20 billion from $5.06 billion to beat expectations of $4.78 billion. Homebuilding gross margin was 20.1%, just shy of the FactSet consensus of 20.2%. The average sales price of homes delivered fell to $407,000 from $413,000 a year ago, due primarily to product mix, as the Texas segments continued to shift to lower-priced communities. Sales incentives were $26,600 per home delivered, or 6.1% of home sales revenue, up from 5.3% last year. “The well-documented market pause in the second half of 2018 set the stage for more moderate home price increases and lower interest rates which stimulated both affordability and demand, leading homebuyers back to the market,” said Executive Chairman Stuart Miller. The stock has rallied 31.3% year to date, while the S&P 500 has gained 17.5%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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