HomebuilderStocks.com Reports: Major Homebuilder Companies Report Record Quarterly Gains

From: homebuilderstocks.com
Published: Mon Mar 28 2005

HomebuilderStocks.com, Monday, March 28, 2005 -- According to a report released last Thursday by the US Department of Commerce, US based new home sales increased by 9.4% in February. This represents the greatest percentage increase for the homebuilder market in four years. February sales matched those of December and were slightly behind the record sales of October which amounted to 1.304 million.

The report continued to say that the median sales price of new homes for February was US$230,700, and the seasonally adjusted estimate for new houses for sale at the end of last month was 444,000. Despite the fact that Fed interest rate hikes seem likely to continue, at least in the short term, economists believe that rising incomes and appreciating home values will keep demand in this sector strong.

Once again, the major competitors in the sector reported record quarterly gains.

Toll Brothers (NYSE:TOL), the nation's leading builder of luxury homes, who have been setting weekly sales records nearly every week this quarter, reported record results for earnings, revenues, contracts and backlog for its first quarter ended January 31, 2005. First quarter 2005 earnings per share of $1.33 increased 115% over first quarter 2004. Speaking with HomebuilderStocks.com, Fred Cooper, Senior Vice President of Finance said, "We are seeing continued strong demand across our luxury home product lines, and we believe that with our significant land position in lot constrained markets we are positioned for continued growth."

Lennar Corporation reported 39% increase in net earnings for first quarter 2005. The company reported first quarter revenues of US$2.4 billion, an increase of 29% over the same period last year. Lennar also reported an increase of 9% in the number of new orders received. This caused the company to raise their EPS goal from US$6.90 to US$7.15.

KB Home (NYSE: KBH) also reported record first quarter 2005 results. The company’s revenues grew by 21% to $1.64 billion, pushing their EPS up 61% to $2.82. KB Home raised its earnings estimate for 2005 to $15.75 per diluted share, up $1.25 from its previous estimate.

Sector growth and a bullish housing outlook were reported on in an original article by www.HomebuilderStocks.com at the beginning of January ("Homebuilder Stocks Finish Up A Record Breaking Year With Strong Projections For 2005." Click here for full article: http://www.homebuilderstocks.com/Companies/HomebuilderStocks/Articles/Homebuilder_Growth.asp).
Our current list of public companies in the sector includes: Toll Brothers (NYSE: TOL), Beazer Homes USA, Inc., Ryland Group, Brookfield Homes, Centex, Inc., Home Depot, Homestore, Inc., KB Home (NYSE: KBH), Lennar Corporation, Lowe’s, Monterey Homes, Orleans Homebuilders, Inc., Pulte Homes and numerous others.

For the complete list, click here: http://www.homebuilderstocks.com/Companies/HomebuilderStocks/HomebuilderStockList.asp

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SOURCE: ECON Investor Relations Inc., which owns the domain www.HomebuilderStocks.com.

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