Why Lennar Stock Is Moving Higher After Hours

Lennar Corp LEN shares are trading higher in Tuesday's after-hours session after the homebuilder reported better-than-expected financial results.

What Happened: Lennar said fiscal first-quarter revenue increased 5% year-over-year to $6.49 billion, which beat average analyst estimates of $5.93 billion, according to Benzinga Pro. The homebuilder reported quarterly adjusted earnings of $2.12 per share, which beat consensus estimates of $1.55 per share.

Deliveries jumped 9% year-over-year to 13,659 homes, while new orders decreased by 10%. Backlog also fell 29% to 19,403 homes.

"During the quarter, we saw a generally strong economy at the intersection of high inflation and strong employment numbers, while the housing market continued down a winding road of trying to find its footing. In December, interest rates and sticker shock continued to constrain sales activity, while in January and early February, lower interest rates energized sales," said Stuart Miller, executive chairman of Lennar.

"In late February, a spike in interest rates impacted website and community traffic and had a slight impact on sales ... the housing market continues shifting as growing household and family formation continued to drive demand against a chronic supply shortage."

As of Feb. 28, the company had $4.1 billion of homebuilding cash and equivalents. 

Lennar sees fiscal second-quarter new orders between 16,000 and 17,000 at an average sales price between $435,000 and $445,000. The company expects to deliver 15,000 to 16,000 homes next quarter.

See Also: 4 Experts Agree Following CPI Inflation Print: Housing Appears To Be Inflating Data, But The Fed Will Not Be Fooled

Lennar will hold a conference call to discuss these results on Wednesday at 11 a.m. ET.

LEN Price Action: Lennar has a 52-week high of $109.28 and a 52-week low of $62.54, according to Benzinga Pro.

The stock was up 2.58% at $103.50 at the time of publication.

Photo: Pexels from Pixabay.