Lennar (LEN): Shares fell after the homebuilder reported its third quarter results were impacted by higher rates. Revenue totaled $8.9 billion for the quarter, missing Wall Street’s estimate of $9.04 billion. Net earnings per diluted share increased 11% to $5.03.
New orders decreased 12% to 14,366 homes as mortgage rates continued to climb. Despite the slowdown, Lennar Executive Chairman Stuart Miller remained optimic, writing in the release, “Sales have clearly been impacted by rising interest rates, but there remains a significant national shortage of housing, especially workforce housing, and demand remains strong as we navigate the rebalance between price and interest rates.”
KB Home (KBH): Shares fell in extended trading after the homebuilder reported third-quarter deliveries that fell short of Wall Street’s estimate. KB Home noted ongoing supply chain constraints as a headwind during the quarter and warned that those issues could impact fourth quarter results. Chairman and CEO Jeffrey Mezger noted “The combination of rising mortgage interest rates, ongoing inflation and other macro concerns has caused many prospective buyers to pause on their homebuying decision.” KB Home reported third-quarter earnings of $2.67 on revenue of $1.87 billion.
General Motors (GM): GM is closing reservations for its electric GMC Hummer pickup and GMC Hummer SUV after more than 90,000 vehicles were reserved, according to CNBC. Reservations currently extend out to 2024.
Steelcase (SCS): The office furniture manufacturer missed on second-quarter revenue and issued weaker than expected third-quarter guidance, sending shares lower in after hours trading. Steelcase announced additional reductions to planned spending, including the elimination of up to 180 positions, and lowered its quarterly dividend due to the “uncertain demand environment.” Shares have declined 21% since the start of the year.