Homebuilder Lennar Just Reported A Huge Spike In New Orders

Lennar Corp

Photo: AP Images

Lennar reported a 40 per cent jump in new orders, and its stock has spiked five per cent in pre-market trading on the solid second-quarter earnings.Gross margin on home sales was reported at 22.5 per cent, up 310 basis points from last year’s second quarter. Overall, revenues rose 22 per cent up to $930.2 million. 

Lennar’s improvement is a major housing bellwether, so the great earnings report is a great sign for the housing market.

“Evidence from the field suggests that the ‘for sale’ housing market has, in fact, bottomed and that we have commenced a slow and steady recovery process. And while the housing downturn was broad-based and national, the recovery process continues to be very localised,” said Stuart Miller, Chief Executive Officer.

More to come…

Click here for updates >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.