Homebuilders Recovers Lennar (LEN, KBH, BZH, RYL, DHI)

Homebuilders Recovers Lennar (LEN, KBH, BZH, RYL, DHI)

Homebuilders stocks bounced back on Tuesday after falling in the past two consecutive days as Lennar Corporation(NYSE:LEN) reported better than expected first-quarter earnings, although it reported a 45 decline in its bottom line.

Lennar Corporation(NYSE:LEN) shares jumped over 4.24% to $27.52. This morning, the company said that it earned $15 million, or 8 cents a share, compared to a year ago profit of $27.4 million, or 14 cents a share. The year-earlier period included a 19-cent per-share benefit tied to a one-time legal settlement.

Revenue during the quarter grew 30% year-over-year to $724.9 million as revenue from homebuilding rose 34% to $624.4 million.

Analysts were estimating the company to report $699 million in total revenue. Gross margin on home sales improved to 20.9% from 20%. Deliveries rose 29% to 2,482 homes. The cancellation rate was 18%.

“We have seen the market stabilize, driven by a combination of low home prices and low interest rates, making the decision to purchase a new home more attractive, compared to the heated rental market,” Lennar CEO Stuart Miller said in a statement.

Shares of KB Home (NYSE:KBH ) bounced back over 15 after falling 24% in the past three trading sessions. On Friday, the sector was under heavy selling pressure following KB Home (NYSE:KBH) reported much higher than anticipated loss in its fiscal first-quarter loss driven by heavy charges.

The company reported that its net loss narrowed to $45.8 million, or 59 cents a share, compared with a year-ago loss of $114.5 million, or $1.49 a share. Revenue during the quarter grew 29% year-over-year to $254.6 million as home deliveries jumped 21% and average selling price surged 6.50%.

Beazer Homes USA, Inc.(NYSE:BZH) added 3.64% to $3.42 after falling over 85 in the past couple of trading sessions.

The Ryland Group, Inc.(NYSE:RYL) rose 4.30% to $20.30, recovering almost all of its recent losses. D.R. Horton, Inc.(NYSE:DHI) also gained about 4% , recouping almost all of its recent losses.