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Homebuilder Lennar's profit, revenue tops estimates; orders rise

New homes for sale by Lennar home builders.
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New homes for sale by Lennar home builders.

Lennar, the second-largest U.S. homebuilder, reported higher-than-expected profit and revenue for the third quarter as it sold more homes at higher prices and the company said orders rose 8.1 percent.

Lennar, which builds single-family homes, said it sold 6,779 homes in the three months ended Aug. 31, up 7.3 percent from a year earlier, while its average sales price rose more than 3 percent.

New U.S. single-family home sales rose more than expected in June and unexpectedly rose in July, to their highest in nearly nine years, as demand increased broadly.

Lennar said its orders, a key indicator of future revenue for homebuilders, rose to 7,018 homes from 6,495.

The company's revenue rose 13.7 percent to $2.83 billion in the third quarter.

Net income attributable to Lennar's shareholders rose to $235.8 million, or $1.01 per share, from $223.3 million, or 96 cents per share.

Analysts on average were expecting a profit of 89 cents per share and revenue of $2.68 billion, according to Thomson Reuters I/B/E/S.

Up to Monday's close, shares of the Florida-based builder had fallen 7.8 percent this year.