Miami, FL, September 20--Homebuilder Lennar Corp Monday reported record third-quarter earnings and hiked future guidance.
The company said net income rose more than 12% to $225.2 million, or $1.36 a share, versus $201.6 million, or $1.21 a share, in the year-ago period. Revenue increased 21% to $2.7 billion. Analysts expected the company to earn $1.34 a share, according to Thomson First Call.
Lennar also increased earnings guidance. It now expects full-year 2004 EPS of $5.70, versus a previous outlook of $5.50. Its fiscal 2005 EPS forecast was increased to $6.60 from $6.00. The consensus estimates are for $5.54 and $6.03 a share.
"Assuming general economic stability, our record- level $6.1 billion backlog, our strong balance sheet and our strategic positioning give us confidence in our future outlook," the company said.
Analysts have been predicting a slowdown in the nation's housing boom ever since the Fed earlier this year signaled its intention to start raising short-term interest rates for the first time in four years, but lingering questions about the durability of the economic expansion have kept market interest rates under control. The 10-year Treasury bond, on which most mortgage rates are based, recently touched a five month low, following a brief surge in the spring.
The company also said it had record homebuilding operating earnings of $372.7 million in the third quarter -- up $70.7 million from a year ago.
