Investing.com - Lennar surged Tuesday, sending homebuilders sharply higher, despite reporting mixed performance for the fourth quarter and signalling uncertainty remains front and center in the U.S. housing market.
Lennar (NYSE:LEN) rallied 8% as the company reported earnings of $1.96 a share, a penny above consensus on Capital IQ. Revenue jumped 71% to $6.46 billion, but narrowly missed analysts' estimates for $6.55 billion.
Management was also bullish on the earnings call, noting that while demand had slowed, that was part of a normal seasonal pattern and saying that the housing market would rebound on a solid fundamental backdrop, Briefing.com reported.
Lennar decided against providing guidance for the fiscal year, blaming "continued softness, and uncertainty," in the fourth quarter, which is typically the slowest time of the year for homebuilding.
Analysts were unhappy by Lennar's decision to defer guidance, saying uncertainty would likely continue until the spring selling season that starts in February.
KB Home (NYSE:KBH) surged 4% ahead of its report due after the closing bell.
Analysts forecast the homebuilder generated earnings of 94 cents a share on revenue of more than $1.3 billion.
Homebuilders have managed a bold start to the year, picking up from a rally that got underway in the final week of December last year, though remain down 24% over the last 12 months.