Creative sales strategies helped Lennar Corp blow through unsold inventory and easily beat the Street's revenue estimate, but it wasn't enough to narrow the quarter's loss. The builder also now has fewer homes to sell going forward.
Still, the Miami-based builder's stock soared Wednesday and was, by far, the sector's biggest gainer: After spiking more than 4% in the pre-market, shares recently traded up more than 16%, compared with the Dow Jones US Home Construction Index's 3.79% boost. All the major builders saw gains topping 1.4%.
In its fiscal second quarter, Lennar, the nation's fourth-largest builder by annual closings, saw its loss widen on increased write-downs and charges. For the period ended May 31, it posted a loss of $125.2m, or 76 cents a share, compared with a year-earlier loss of $120.9m, or 76 cents a share. There were 3.9% more shares outstanding in the more recent period. The latest results included 65 cents in write-downs and tax-valuation allowance charges, compared with 60 cents a year earlier.
Wall Street Journal