Homebuilder Lennar Corp. (LEN) posted a third-quarter profit of $87.1 million, or 40 cents a share, as home sales and new orders increased for the period.
That is up dramatically from earnings of $20.7 million, or 11 cents a share, a year earlier. Lennar second-quarter earnings surged on an increase of the homebuilder's deliveries and new orders, as well as a tax adjustment that boosted gains. The company reported net earnings in the second quarter of $452.7 million, or $2.06 a share, up significantly year-over-year from $13.8 million, or 7 cents a share.
The Miami-based builder accepted 4,198 new orders in 3Q, a year-over-year increase of 44%. Meanwhile, deliveries of new units grew 28% from last year to 3,655 homes.
"The housing market has stabilized and the recovery is well underway," said Stuart Miller, chief executive officer of Lennar Corporation.
"Low mortgage rates, affordable home prices, increased buyer confidence and an extremely favorable rent-to-own comparison are driving growth in each of our markets."
Revenue at the homebuilder rose 34% to $1.1 billion. The company ended the quarter with no borrowers, a $525 million credit facility and a debt to total capital ratio of 47.7%.
Lennar is not the first homebuilder to report a resurgence in the recent three-month quarter. A home sales increase pushed builder KB Home (KB) to a third-quarter profit of $3.3 million, or 4 cents a share, after experiencing a net loss last year.