(Bloomberg) -- Lennar Corp. led gains in U.S. homebuilder shares after the company reported robust growth in revenue and orders for its fiscal first quarter, signaling a strong start to the spring selling season.
Lennar's home orders for the three months through February jumped 30 percent from a year earlier, the Miami-based builder said in a statement Wednesday. Subtracting sales from Lennar's recent acquisition of CalAtlantic Group Inc., the gain was about 14 percent, according to Bloomberg Intelligence analyst Drew Reading. Revenue increased 34 percent to $2.6 billion, or about 15 percent with the adjustment, Reading said.
The shares rose 6.6 percent to $60.86 at 11 a.m. in New York. It was the biggest gain in an S&P index of homebuilders, which was up 3.1 percent.
Builders are benefiting from a buyer rush as rising mortgage rates add urgency to complete deals before costs climb even higher. Job growth, consumer confidence and the tight inventory of previously owned homes are also fueling demand.
“Lennar posted a solid quarter,” Reading said in an email. “The demand environment remains strong in the face of modestly higher rates and should provide some respite to investors concerned of the potential impact on demand.”
To contact the reporter on this story: Prashant Gopal in Boston at pgopal2@bloomberg.net.
To contact the editors responsible for this story: Daniel Taub at dtaub@bloomberg.net, Christine Maurus, Heather Perlberg
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