Lennar Posts 4Q Results With Revenue Increase

Lennar announced fourth quarter results on January 11. The Company reported revenue increase of 10.8% as compared to last year. The result exceeded market expectations. The average price for each home sold increased from $238,000 to $243,000.

Earning per share was $0.16. Housing demand continues to increase led by gains in the Midwest and the South. Sales increased by 9.8% as compared to previous year. The gains were widely spread over all areas.

Lennar’s 4Q Results were better than expected. There was an increase of 10.8% in revenue. The gains were led by the western regions and the southeast Florida. The market is expected to improve during 2012 as demand for houses will increase.

During the third quarter, gross margin declined from 21.1% to 19.4%. Real estate portfolio contributed $6.0 million as operating earnings which was higher from last year’s figure of $5.7 million and $46.5 million as revenue that was up from $42.1 million of revenue recorded last year.

Sales results of the company were impressive chiefly in backlog and new orders. Going forward, rise in demand will have positive impact on gross margins. The company has got the ability to deliver solid growth in profit.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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