Lennar Stock Is Trading Higher Thursday: What's Going On?

Lennar Corp LEN shares are rising Thursday after the homebuilder reported better-than-expected second-quarter 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 at 11 a.m. ET.

Following the company's quarterly results, Wedbush analyst Jay McCanless maintained Lennar with a Neutral rating and raised the price target from $94 to $123.

See Also: Best Homebuilder Stocks

LEN Price Action: Lennar is set to open at new 52-week highs on Thursday.

The stock was up 3.61% at $118.89 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.