Why Lennar Stock Is Moving Higher After Hours

Shares of U.S. homebuilder Lennar Corp LEN are trading higher in Wednesday's after-hours session after the company reported better-than-expected quarterly results.

• Q2 Revenue: $8.04 billion beat estimates of $7.18 billion
• Q2 EPS: $2.94 beat estimates of $2.32

Lennar said it delivered 17,074 homes in the second quarter and received 17,885 new orders. The average sales price per home delivered was $449,000. The homebuilder has a backlog of 20,214 homes with an estimated value of $9.5 billion.

Lennar said its homebuilding gross margin started to bounce back in the quarter, coming in at 22.5%, reflecting cost reductions.

"During the quarter, we continued to see the housing market normalize and recover from the Fed's 2022 aggressive interest rate hikes in response to elevated inflation," said Stuart Miller, executive chairman of Lennar.

"As consumers have come to accept a "new normal" range for interest rates, demand has accelerated, leaving the market to reconcile the chronic supply shortage derived from over a decade of production deficits."

Lennar expects third-quarter home deliveries to be between 17,750 and 18,250, with a gross margin of 23.5% to 24%. The average sales price per home is expected to be consistent with second-quarter numbers. 

Management will hold a conference call to discuss these results on Thursday at 11 a.m. ET.

LEN Price Action: Lennar hit new 52-week highs during Wednesday's regular trading session and continued higher after the bell.

The stock was up 2.49% after hours at $117.60 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.