Shares of homebuilder Lennar (LEN) rose 2.6% during premarket trading after the company topped both top and bottom line estimations during Q2 2018. This is the first quarterly result that includes the company’s recently acquired CalAtlantic’s operations. The company’s strong results were mainly due to steady economic growth and low rate of unemployment.
Revenue rose 67% to $5.5 billion, easily topping consensus estimate of $5.11 billion. Earnings rose to $310.3 million, or $0.94 per share from $213.7 million, or $0.89 per share, a year earlier. Excluding items, the company earned $1.58 per share. Analysts expected the company to report earnings of $0.45 a share.
Lennar has also witnessed an improvement in its orders trend. During the quarter, new orders rose 62%, while Deliveries improved 57%.
“Concerns about rising interest rates and construction costs have been offset by low unemployment and increasing wages, combined with short supply based on years of underproduction of new homes. Demand remained strong as we continued to see pricing power support margins while affordability remained consistent,” said Stuart Miller, Executive Chairman.
The company, under the leadership of Rick Beckwitt, had earlier made it clear that it plans to divest its Rialto and multifamily business to stay in the pure homebuilding business. The company is in talks with banks to evaluate strategic alternatives for the two segments.
PepsiCo Inc. (NASDAQ: PEP) reported first quarter 2021 earnings results on Thursday that topped expectations on both the top and bottom lines. The stock has gained 7% in the past
Emerging from the slowdown caused by coronavirus, the financial services sector entered fiscal 2021 on a bright note, thanks to improving economic activity and the COVID-driven boom in stock trading.
Artificial Intelligence has become an integral part of the US economy. According to the analyst’s insights, AI market revenue in 2020 was $25.9 billion. The AI market in the North