Lennar, the second-largest U.S. homebuilder, reported quarterly profit that topped analysts’ estimates as it sold more homes at higher prices.
An improving job market and attractive mortgage rates continue to fuel demand for housing in the United States, helping homebuilders such as Lennar and PulteGroup.
Orders, a key indicator of future revenue for homebuilders, rose 9 percent in the fourth quarter ended Nov. 30, Lennar said.
The Florida-based builder said it sold 8,228 homes during the quarter, compared with 7,657 homes last year. The average sales price increased 2.6 percent to $358,000.
Lennar’s strong balance sheet will hold the company in good stead, despite a potential rise in interest rates over the next several years, Chief Executive Stuart Miller said on Monday.
The U.S. Federal Reserve raised interest rates last week and signaled a faster pace of increases in 2017 as central bankers adapted to President-elect Donald Trump’s promises of tax cuts, spending and deregulation.
The company’s net income attributable to shareholders rose to $313.5 million, or $1.34 per share, in the quarter from $281.6 million, or $1.21 per share, a year earlier.
Revenue rose to $3.38 billion from $2.95 billion.
Analysts on average had expected the company to earn $1.29 per share on revenue of $3.30 billion, according to Thomson Reuters I/B/E/S.
Up to Friday’s close, shares of the company had fallen 11.2 percent this year.