Residential building giant posts surprising 3rd-quarter profits
Going to start today with homebuilding Lenore corpse third quarter profits came in solidly higher than Wall Street was expecting I know shares are down a little bit but. I don't know Jason I mean Lavar gross margins are improving and the low interest rate environment certainly helps. Yeah it's absolutely helping and I mean we we've certainly seen signs that the housing market is not not only stable but really flourishing, which is kind of interesting to try to square in this in this. Time but but hey, that's that's housing right? It's it's one of those things that everybody needs. These results I was really impressed earnings were up thirty three percent on relatively flat revenue I. Mean Anytime you have a company that can do that I mean you got at least take note and try to figure out what they're doing to see if they can't. Keep on doing it. If you look at the numbers that deliveries of thirteen thousand, eight, hundred, forty tunes that was up just two percent they new orders. Of a little bit better than fifteen, thousand, five, hundred homes that was up sixteen percent. Dollar value of six point, three, billion dollars was up twenty percent and also a strong backlog backlog dollar value of close to eight billion dollars up four percent, and so all in all, what we're seeing what management noted is that the fundamentals in the housing market are very strong in that supported, of course, by record low interest rates. As, well, as a relatively undersupply, relatively continued undersupply of new and existing homes. You know anecdotally I will say like we're in the middle of refinancing our home here and you know what comes with refinancing a home as you get the appraisal to make sure that the value the home is, is there so that the bank and can? Crunch the numbers correctly in in certainly if it seems like valuations in our area are continuing to go up and I would imagine. They're seeing seeing that in a lot of places and then it'll be really interesting to see here as. The pandemic continues as companies start to reassess how they. are handling their workforce I. Mean If more folks start fleeing big cities for suburbia that absolutely has the potential to continue pushing up the demand for for these homes, which ultimately pushes up the prices put pushes up the. Performance for companies like Lenore, in being the largest home builder out there by revenue I mean certainly this another quarter of excellent.